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 her federal taxable income be x. Then 0.284x = 15,449.60, so x = 15,449.60 / 0.284 = 54,400.
State tax = 3.75% of 54,400 = 0.0375 × 54,400 = 2,040.00.

Answer: d. $2,040.00