Question

Noel Schumacher, a single female, earned $66,500 a year. After subtracting the standard tax deductions for her one exemption, her monthly taxable wages were $5,155.25.How much state income tax was deducted from each monthly paycheck? Note: Percentage method for calculation: For taxable monthly wages over $3,862, but not over$83,334 = $197.66, plus 10.505% of excess over $3,862.$333.52$339.84$347.65$359.66None of these choices are correct.

Answer 1

Taxable monthly wage = $5155.25

Excess income over $3862 = 5155.25 - 3862 = 1293.25

Taxable income over $3862 = $197,66 +

$\begin{gathered} \text{Taxable income over \ 3862 = \ 197.66 + 10.505\% of \ 1293.25} \\ =\text{ 197.66 + }\frac{10.505\text{ }\times\text{ 1293.25}}{100} \\ =\text{ 197.66 + 135.86} \\ =\text{ \ 333.52} \end{gathered}$

Final answer

State income tax from each monthly paycheck = $333.52