Question

Laurie is self employed and expects to make $96,000. She expects to pay 12.4%, 2.9%, and 25% in taxes. What is Laurie's expected tax payment for the fourth quarter?
Ms. Sue
12.4 + 2.9 + 25 = 40.3% = 0.403

(0.403 * 0.403) / 0.25 = ?
So, I multiply 0.403 w/0.403 and then divide by 0.25?

Okay, I tried that but the answer doesn't give me a whole number, it gives me a decimal...0.6496. That doesn't appear like an amount she would owe. Am I doing it wrong?

Related Questions

Laurie is self-employed and expects to make $96,000 in 2007. Her social security tax rate is 12.4%... Laurie expects to make $100,000 in 2007. Her social security tax is 6.20% up to the wage base, Medi...