Answer:
The answer is below
Explanation:
Use the Exemption amounts in Figure 2.2 on page 132 to find the (a) amount for exemptions and (b) annual state income taxes.
The exemptions are shown in the image below.
a) We can see that the exemptions for a married person is $4000 and $2000 per dependent. Since there are 2 dependents therefore:
Amount for exemptions = $4000 + (2 dependents × $2000 per dependent)
Amount for exemptions = $4000 + $4000 = $8000
Amount for exemptions = $8000
b) Taxable wages = Annual gross pay - Exemptions
Taxable wages = $63840 - $8000 = $55840
Annual state income taxes = Taxable wages × State tax rate
Annual state income taxes = $55840 × 4% = $2233.6