Kelly total income last year was $24,000, but she could deduct $12,000 for various reasons.
How can I calculate;
If she had to pay 15% of her taxable income in federal income tax, what was her total tax payment?
So I did 12,000 x .15 and got 1800, but I don't know if that's right can you help
Please
Yes. I get the same answer.
Thanks!
You're welcome.
Yes, I can help you calculate Kelly's total tax payment. To do that, we need to determine her taxable income first. Taxable income is the income left over after deducting any eligible deductions or exemptions.
In this case, Kelly's total income last year was $24,000, and she could deduct $12,000. So to find her taxable income, we need to subtract the deductions from her total income:
Taxable Income = Total Income - Deductions
Taxable Income = $24,000 - $12,000
Taxable Income = $12,000
Now that we have the taxable income, we can calculate her federal income tax payment. You correctly used the tax rate of 15%. To calculate the tax payment, you multiply the taxable income by the tax rate:
Tax Payment = Taxable Income * Tax Rate
Tax Payment = $12,000 * 0.15
Tax Payment = $1,800
So your calculation is correct! Kelly's total tax payment would be $1,800.