Question

Use the exemption amounts in the table below to find the amount for exemptions.

Sara Moon is a video editor who earns $63,840 annually. She is married, has 2 dependents, and her state tax is 4%.



Group of answer choices

$6,000

$8,000

$4,000

$2,000

Answer 1

Sara Moon's qualified tax exemptions merited by her married status with two dependents are B. $8,000.

What are tax exemptions?

Tax exemptions are the monetary exclusions or deductions that reduce the taxable income of a taxpayer in a tax year.

Qualified exemptions are deducted from the gross earnings before the tax rate is applied to the taxable income.

Data and Calculation:

Annual earnings =    $63,840

Sara Moon is married with 2 dependents

State tax rate = 4%

Exemptions:

Married                        4,000

Each Dependent        4,000 ($2,000 x 2)

Total exemptions  = $8,000

Taxable income     $55,840 ($63,840 - $8,000)

State tax (4%)           $2,233.60 ($55,840 x 4%)

Thus, Sara Moon's qualified tax exemptions are B. $8,000.

Learn more about tax exemptions at https://brainly.com/question/2170674

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Question Completion with Figure 2.2:

Figure 2.2 (Exemptions):

Single                 $2,000

Married                 4,000

Each Dependent 2,000

Use The Exemptions Amounts In Figure 2.2 To Help You Find The A) Amount For Exemptions, And B) Annual State Income Taxes