Question
Amanda Sabino's taxable income is $20,900.00. How much will she pay in state tax?
Tax Table-
First $2,000: 2.0% rate
Next $4,000: 3.0% rate
Next $4,000: 4.5% rate
Over $10,000: 6.0% rate
My answer-$1254
Am I correct? Thank you!!
Tax Table-
First $2,000: 2.0% rate
Next $4,000: 3.0% rate
Next $4,000: 4.5% rate
Over $10,000: 6.0% rate
My answer-$1254
Am I correct? Thank you!!
Answers
Steve
I don't think so. The tax rates are applied only to a portion of eligible income. Only the amount over $10K is taxed at 6%
.02*2000 + .03*4000 + .045*4000 + .06(20900-10000) = 994
.02*2000 + .03*4000 + .045*4000 + .06(20900-10000) = 994