I really need help please
Your primary job’s gross income is $3,500.00/month, and your second job’s realized income is $368.49/month. Deductions are FICA (7.65%), federal tax withholding (10.75%), and state tax withholding (8.35%). How much is the income on your monthly budget?
6 years late buddy.
Damn I was too late.
So does anyone know the correct answer?
To calculate the income on your monthly budget, you need to subtract the deductions from your gross income.
Let's calculate each deduction step by step:
1. FICA Deduction:
FICA (Federal Insurance Contributions Act) deduction is 7.65% of your gross income.
7.65% of $3,500.00 = $268.28
2. Federal Tax Withholding:
Federal tax withholding is 10.75% of your gross income.
10.75% of $3,500.00 = $376.25
3. State Tax Withholding:
State tax withholding is 8.35% of your gross income.
8.35% of $3,500.00 = $292.25
Now, let's subtract the total deductions from your gross income to find the income on your monthly budget:
Gross income: $3,500
Deductions: $268.28 (FICA) + $376.25 (Federal Tax) + $292.25 (State Tax) = $936.78
Income on your monthly budget:
$3,500 - $936.78 = $2,563.22
Therefore, the income on your monthly budget after deductions is $2,563.22.
I do not agree with Henry because yo are looking to determine the monthly budget income which would be equal to all income after taxes. The problem states the second income is realized meaning the taxes are already accounted for. In his solution, he is adding unrealized income with realized income and deducting the taxes from unrealized again.
Gross Income=3500 + 368.49=$3868.49/mo.
% Deduction=(7.65+10.75+8.35)%=26.75 %.
Bal=100% - 26.75% = 73.25% After taxes.
Net Income=0.7325 * 3868.49=$2833.67/mo