Question
Your gross pay is $2,759.00. Your involuntary deductions are FICA (7.65%), federal withholding (12%), and state withholding (7%). How much are you allowed for housing and fixed expenses?
(1 point)
Responses
$772.52
$772.52
$993.24
$993.24
$728.54
$728.54
$566.64
(1 point)
Responses
$772.52
$772.52
$993.24
$993.24
$728.54
$728.54
$566.64
Answers
GPT-4o mini
To calculate your take-home pay after deductions, we first need to find the total amount of involuntary deductions from your gross pay.
1. Calculate FICA:
\[
\text{FICA} = 2,759 \times 0.0765 = 210.47
\]
2. Calculate Federal Withholding:
\[
\text{Federal Withholding} = 2,759 \times 0.12 = 330.84
\]
3. Calculate State Withholding:
\[
\text{State Withholding} = 2,759 \times 0.07 = 193.13
\]
Now, sum all the deductions:
\[
\text{Total Deductions} = \text{FICA} + \text{Federal Withholding} + \text{State Withholding}
\]
\[
\text{Total Deductions} = 210.47 + 330.84 + 193.13 = 734.44
\]
Now subtract the total deductions from your gross pay to find your take-home pay:
\[
\text{Take-Home Pay} = 2,759 - 734.44 = 2,024.56
\]
Next, to determine how much you are allowed for housing and fixed expenses, we'll use the general recommendation which suggests that about 30% of income should be allocated for these expenses. Therefore:
\[
\text{Housing and Fixed Expenses} = 2,024.56 \times 0.30 = 607.37
\]
None of the provided options match this calculation precisely; however, if the question is asking for the net amount after all significant taxes, we still end up with values higher than the suggested options.
Thus, we might need to consider what fixed deductions are accepted in the responses provided or check if rounding differs minimally. Since the highest value option close to our deductions, but not matching directly would be closest to `$566.64` unless specific conditions or fixed expenses were additionally outlined.
The answer based on your case would probably relate most appropriately under an adjusted or situational scenario of what fixed allowances could be listed. However, this exercise fundamentally started from standard deductions followed.
If any specifics were clarified further regarding what fixed allowances apply or housing conditions imposed, such might refine the final disposition toward a more direct completion matched option.
1. Calculate FICA:
\[
\text{FICA} = 2,759 \times 0.0765 = 210.47
\]
2. Calculate Federal Withholding:
\[
\text{Federal Withholding} = 2,759 \times 0.12 = 330.84
\]
3. Calculate State Withholding:
\[
\text{State Withholding} = 2,759 \times 0.07 = 193.13
\]
Now, sum all the deductions:
\[
\text{Total Deductions} = \text{FICA} + \text{Federal Withholding} + \text{State Withholding}
\]
\[
\text{Total Deductions} = 210.47 + 330.84 + 193.13 = 734.44
\]
Now subtract the total deductions from your gross pay to find your take-home pay:
\[
\text{Take-Home Pay} = 2,759 - 734.44 = 2,024.56
\]
Next, to determine how much you are allowed for housing and fixed expenses, we'll use the general recommendation which suggests that about 30% of income should be allocated for these expenses. Therefore:
\[
\text{Housing and Fixed Expenses} = 2,024.56 \times 0.30 = 607.37
\]
None of the provided options match this calculation precisely; however, if the question is asking for the net amount after all significant taxes, we still end up with values higher than the suggested options.
Thus, we might need to consider what fixed deductions are accepted in the responses provided or check if rounding differs minimally. Since the highest value option close to our deductions, but not matching directly would be closest to `$566.64` unless specific conditions or fixed expenses were additionally outlined.
The answer based on your case would probably relate most appropriately under an adjusted or situational scenario of what fixed allowances could be listed. However, this exercise fundamentally started from standard deductions followed.
If any specifics were clarified further regarding what fixed allowances apply or housing conditions imposed, such might refine the final disposition toward a more direct completion matched option.