You (or your parents) earn $53,698.00/yr and you have deductions of FICA (7.65%), federal tax withholding (11.5%), and state tax withholding (9%). How much is the allowed housing expense for the year? Round any decimals to the nearest penny.
First, we need to calculate the total deductions for the year:
FICA: $53,698.00 x 7.65% = $4,107.327
Federal tax withholding: $53,698.00 x 11.5% = $6,182.87
State tax withholding: $53,698.00 x 9% = $4,832.82
Total deductions: $4,107.33 + $6,182.87 + $4,832.82 = $15,123.02
Now, we subtract the total deductions from the annual income to find the allowed housing expense:
$53,698.00 - $15,123.02 = $38,574.98
Therefore, the allowed housing expense for the year is $38,574.98.