Round to the nearest penny. Your primary job's gross income is $3,500.00 /month, and your second job's realized income is $368.49/month. Deductions are FICA 7.65%, federal tax withholding (10.75%), and state tax withholding (8.35%). How much is the income on your monthly budget?

Answer 1

To calculate the net income for your monthly budget, we need to first determine the total gross income, then apply the deductions for FICA, federal tax withholding, and state tax withholding.

1. Total Gross Income:

   • Primary job: $3,500.00
   • Secondary job: $368.49
   • Total Gross Income = $3,500.00 + $368.49 = $3,868.49

2. Deductions Calculation:

   • FICA (7.65%):
     \[ FICA = 3,868.49 \times 0.0765 = 296.44 \]
   • Federal tax withholding (10.75%):
     \[ Federal\ Tax = 3,868.49 \times 0.1075 = 415.87 \]
   • State tax withholding (8.35%):
     \[ State\ Tax = 3,868.49 \times 0.0835 = 323.98 \]

3. Total Deductions: \[ Total\ Deductions = 296.44 + 415.87 + 323.98 = 1,036.29 \]

4. Net Income Calculation: \[ Net\ Income = Total\ Gross\ Income - Total\ Deductions = 3,868.49 - 1,036.29 = 2,832.20 \]

5. Final Amount for Monthly Budget:

   • Rounding to the nearest penny gives us a net income of $2,832.20.

Therefore, the income on your monthly budget is $2,832.20.