If someone paid $59.00 on their taxable income with a state income tax rate of 6%, determine the amount of their taxable income.
To determine the amount of taxable income, we need to reverse calculate based on the given information. We know that the person paid $59.00 in state income tax at a rate of 6%.
To find the taxable income, we can use the formula:
Taxable Income = Total Tax Paid / Tax Rate
Let's substitute the values into the formula:
Taxable Income = $59.00 / 0.06
To evaluate the division, we divide $59.00 by 0.06:
Taxable Income ≈ $983.33
Therefore, the approximate taxable income would be $983.33.