Question

your primary jobs gross income is $3,468.73 /month Deductions are FICA (7.65%) ,federal tax withholding (11.5%) ,and state tax withholding (7.8%) .How much are your fixed expenses if they are 36% of your realized income

Answer 1

The correct answer is $912.21

Answer 2

The realized income is calculated by subtracting from your gross income all the taxes that need to be payed which totaled to 26.95% which means that the realized income is only 73.05% of the gross income and is equal to $2533.91. The fixed expenses which 36% of the realized income is therefore equal to $912.21.