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Title: Use the 2010 federal income tax brackets and rates listed below to answer the following ... Post by: gewusel on Nov 26, 2017 Use the 2010 federal income tax brackets and rates listed below to answer the following question.
Taxable Income (income tax brackets) Tax rates $40 970 or less 15% of taxable income less than or equal to $40 970; plus $40 970 to $81 941 22% of taxable income greater than $40 970 and less than or equal to $91 941; plus $81 941 to $127 02 26% of taxable income greater than $81 941 and less than or equal to $127 021; plus Over $127 021 29% of taxable income greater than $127 021 In early 2010, Juan's gross pay increased from $35 000 per year to $43 000 per year. a) What was the annual percent increase in Juan's pay before federal income taxes? b) What was the annual percent increase in Juan's pay after federal income taxes were deducted? Title: Re: Use the 2010 federal income tax brackets and rates listed below to answer the following ... Post by: yacom on Nov 26, 2017 a) Increase in gross pay = 43 000 - 35 000 = $8 000
Percent increase = (100%) = 22.8571% b) Federal tax on $35 000 is 15% of $35000 $5 250 Net pay after federal tax = 35000 - 5250 = 29 750 Federal tax on 43 000 On first $40970 $6145.50 On excess 22% of 2030 446.60 $6 592.10 Net pay after federal tax = $43 000 - $6592.10 = $36 407.90 Increase in net pay after federal tax = 36 407.90 - 29 750 = 6 657.90 Percent increase = (100%) = 22.3795% |