Question
Tina will be working at the municipal swimming pool as a lifeguard this summer. She will earn $1,000 per month (a total of $3,000 for the whole summer). Tina does not plan to work any other jobs this year.
What is Tina’s gross annual income (GAI)?
Tina’s total paycheck deductions are listed below. Add these amounts together to determine her total paycheck deductions for the three months.
$255.90 federal income tax (summer total)
$114.00 state income tax (summer total)
$186.00 Social Security, or FICA (summer total)
$43.50 Medicare tax (summer total)
What is Tina’s gross monthly income for each of the summer months (GMI)?
What is Tina’s net monthly income for each of the summer months (NMI)?
What is Tina’s gross annual income (GAI)?
Tina’s total paycheck deductions are listed below. Add these amounts together to determine her total paycheck deductions for the three months.
$255.90 federal income tax (summer total)
$114.00 state income tax (summer total)
$186.00 Social Security, or FICA (summer total)
$43.50 Medicare tax (summer total)
What is Tina’s gross monthly income for each of the summer months (GMI)?
What is Tina’s net monthly income for each of the summer months (NMI)?
Answers
GPT-4o mini
To calculate Tina’s gross annual income (GAI), we need to consider her earnings over the summer months.
### 1. Gross Annual Income (GAI)
Tina will earn $1,000 per month for 3 months, so her GAI is calculated as follows:
\[
\text{GAI} = 1,000 \text{ (monthly)} \times 12 \text{ (months)} = 12,000
\]
### 2. Total Paycheck Deductions for Three Months
Next, we will add up her deductions for the summer.
- Federal income tax: $255.90
- State income tax: $114.00
- Social Security (FICA): $186.00
- Medicare tax: $43.50
Total deductions:
\[
\text{Total Deductions} = 255.90 + 114.00 + 186.00 + 43.50 = 599.40
\]
### 3. Gross Monthly Income for Each of the Summer Months (GMI)
Tina’s gross monthly income (GMI) is simply her monthly salary:
\[
\text{GMI} = 1,000
\]
### 4. Net Monthly Income for Each of the Summer Months (NMI)
Now, we will calculate her net monthly income (NMI), which is her GMI minus the average monthly deductions over the summer. To find the average monthly deductions, we divide the total deductions by 3 (the number of months).
Average monthly deductions:
\[
\text{Average Monthly Deductions} = \frac{599.40}{3} \approx 199.80
\]
Now we can find NMI:
\[
\text{NMI} = \text{GMI} - \text{Average Monthly Deductions} = 1,000 - 199.80 = 800.20
\]
### Summary
- **Gross Annual Income (GAI)**: $12,000
- **Total Paycheck Deductions for Three Months**: $599.40
- **Gross Monthly Income for Each Summer Month (GMI)**: $1,000
- **Net Monthly Income for Each Summer Month (NMI)**: $800.20
### 1. Gross Annual Income (GAI)
Tina will earn $1,000 per month for 3 months, so her GAI is calculated as follows:
\[
\text{GAI} = 1,000 \text{ (monthly)} \times 12 \text{ (months)} = 12,000
\]
### 2. Total Paycheck Deductions for Three Months
Next, we will add up her deductions for the summer.
- Federal income tax: $255.90
- State income tax: $114.00
- Social Security (FICA): $186.00
- Medicare tax: $43.50
Total deductions:
\[
\text{Total Deductions} = 255.90 + 114.00 + 186.00 + 43.50 = 599.40
\]
### 3. Gross Monthly Income for Each of the Summer Months (GMI)
Tina’s gross monthly income (GMI) is simply her monthly salary:
\[
\text{GMI} = 1,000
\]
### 4. Net Monthly Income for Each of the Summer Months (NMI)
Now, we will calculate her net monthly income (NMI), which is her GMI minus the average monthly deductions over the summer. To find the average monthly deductions, we divide the total deductions by 3 (the number of months).
Average monthly deductions:
\[
\text{Average Monthly Deductions} = \frac{599.40}{3} \approx 199.80
\]
Now we can find NMI:
\[
\text{NMI} = \text{GMI} - \text{Average Monthly Deductions} = 1,000 - 199.80 = 800.20
\]
### Summary
- **Gross Annual Income (GAI)**: $12,000
- **Total Paycheck Deductions for Three Months**: $599.40
- **Gross Monthly Income for Each Summer Month (GMI)**: $1,000
- **Net Monthly Income for Each Summer Month (NMI)**: $800.20