(1 point)

Question

Your primary job’s gross income is $3,468.73/month. Deductions are FICA (7.65%), federal tax withholding (11.5%), and state tax withholding (7.8%). How much are your fixed expenses if they are 36% of your realized income? Round any decimals to the nearest penny.

$
/month

Answer 1

To find out how much your fixed expenses are, we first need to calculate your realized income after deductions.

1. Calculate Total Deductions:

   • FICA: \( 3,468.73 \times 0.0765 \)
   • Federal Tax Withholding: \( 3,468.73 \times 0.115 \)
   • State Tax Withholding: \( 3,468.73 \times 0.078 \)

2. Calculate each deduction:

   • FICA: \[ 3,468.73 \times 0.0765 = 265.73 \]
   • Federal Tax Withholding: \[ 3,468.73 \times 0.115 = 398.89 \]
   • State Tax Withholding: \[ 3,468.73 \times 0.078 = 271.75 \]

3. Sum of Deductions: \[ 265.73 + 398.89 + 271.75 = 936.37 \]

4. Calculate Realized Income: \[ 3,468.73 - 936.37 = 2,532.36 \]

5. Calculate Fixed Expenses (36% of Realized Income): \[ 2,532.36 \times 0.36 = 911.64 \]

So, your fixed expenses are $911.64 /month.