Mallory's total income last year was $24,000, but she could deduct $12,000 for various reasons. If she had to pay 15 percent of her taxable income in federal income tax, what was her total tax payment?
0.15 * 12,000 = ?
0.12*12000=180
To calculate Mallory's total tax payment, we need to find her taxable income first. Taxable income is the amount of income left after deducting eligible expenses.
Given that Mallory's total income was $24,000 and she could deduct $12,000, her taxable income will be $24,000 - $12,000 = $12,000.
Next, we need to calculate her federal income tax payment. We know that she has to pay 15 percent of her taxable income. To calculate this, we multiply her taxable income by 15 percent (or 0.15).
Tax payment = Taxable income * Tax rate
Tax payment = $12,000 * 0.15 = $1,800
Therefore, Mallory's total tax payment is $1,800.