Question

Kay earns $78,400 per year. She takes a standard deduction of $5,700 and pays tax at a 21% rate. What is the amount of Kay's income tax? Hint: Income Tax = Taxable Income * Tax Rate

Answer 1

$15,267

Explanation:

Kay earns $78,400 per year and gets a standard deduction of $5,700.

Her taxable income is amount of money that she can pay tax on and that is:

Income - Standard Deduction

= $78,400 - $5,700 = $72,700

She pays tax at a 21% rate, hence, her income tax is:

`(21)/(100) * 72,700`

= $15,267

Her income tax is $15,267.