Question

Victor expects his gross income to be $38,000 this year, but Social Security, Medicare, federal

income tax, and state income tax will be deducted from his pay. Victor lives in Illinois, which has a
flat state income tax of 3%, and he expects that 14% of his gross income will be withheld for federal
income tax. He wants to calculate his projected take-home pay for the year.

How much of Victor's gross income will be taken out for social security?
How much of Victor's gross income will be taken out of Medicare?
How much of Victor's gross income will be taken out for federal income tax?
How much of Victor's gross income will be taken for state income tax?
What is Victor's projected take-home pay for the year? Please help and please show work.

Answer 1

Victor's projected take-home pay after deductions for Social Security, Medicare, federal, and state taxes from his gross income of $38,000 is $28,633.

Step-by-step explanation:

Victor would like to calculate his projected take-home pay for the year, considering various taxes and deductions from his gross income of $38,000. To do this, we need to apply the appropriate percentages for each deduction.

For Social Security, the rate is 6.2%, therefore:

• $38,000 * 6.2% = $2,356

For Medicare, the rate is 1.45%, therefore:

• $38,000 * 1.45% = $551

For federal income tax, Victor expects a 14% withholding, therefore:

• $38,000 * 14% = $5,320

Illinois has a flat state income tax of 3%, therefore:

• $38,000 * 3% = $1,140

To find Victor's take-home pay, we subtract all these deductions from his gross income:

$38,000 - ($2,356 + $551 + $5,320 + $1,140) = $28,633

Victor's projected take-home pay for the year is $28,633.