The correct option is C. $5,000 will pay in federal income taxes if earn $50,000 per year.
What is federal taxable income?
The portion of your gross income known as "taxable income" is used to determine your tax liability for a certain tax year. It can be roughly defined as adjusted gross income less permitted standard or itemized deductions.
Given,
Total Earning = $50,000 per annum
Tax Rate = 10%
Required to calculate the amount of federal income taxes =?
federal income tax = Total Earning x Tax Rate
federal income tax = $50.000 x 10%
federal income tax = $5,000.
Your adjusted gross income determines how much federal income tax you will owe overall (AGI). You must record all of your income from several categories, including wages, interest and dividends, and business revenue, on your Form 1040 and any accompanying schedules.
Thus, the Federal Income tax is $5,000 when the income is $50,000. The right answer is C. If you make $50,000 a year, you will pay $5,000 in federal income taxes.
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