Question

Agnes pays state income tax equal to 3.75% of her federal taxable income. She pays federal income tax equal to 28.4% of her federal taxable income. This year, she paid $15,449.60 in federal income tax. How much did Agnes pay in state income tax?
a.
$573.36
b.
$4,387.69
c.
$1,170.04
d.
$2,040.00

Answer 1

Let x be Agnes's federal taxable income.
The federal income tax she paid is 0.284 * x = $15,449.60.
So, x = $15,449.60 / 0.284 = $54,371.83.
Agnes paid $54,371.83 * 0.0375 = $2,038.80 in state income tax.
Therefore, Agnes paid $2,038.80 ≈ $2,040.00 in state income tax.
The answer is d. $2,040.00.