Question

Georgia's gross pay 35,600 this year. She is to pay a federal income tax of 16%. How much should Georgia pay in federal income tax this year? Round to the nearest dollar

Answer 1

C: 5,696.00 is the correct answer

Answer 2

Rs. 5696

Explanation:

To find federal income tax, calculate adjusted gross income.

Then from adjusted gross income, subtract exemptions and deductions to get your taxable income.

For tax year 2019, the top rate is 37% for individual single taxpayers having income greater than $510,300.

Only 11 % of the people who belong to the age group 25-55 years do not pay federal income tax while more than 80% who belong to the age group of 75 years or older also do not pay tax.

In this question,

Georgia's gross pay 35,600 this year.

Rate of federal income tax = 16%

So, amount paid by Georgia =
`(16)/(100)`×35,600 = Rs. 5696