Tara is saving for an overseas trip. Her taxable income is usually about $20 000. She estimates that she will need $5000 for the trip, so she is going to do some extra work to raise the money. How much extra will she need to earn in order to have $5000 after tax?
Use any tax table u want I just want a rough idea on how to get to the answer
To determine how much extra income Tara will need to earn in order to have $5000 after taxes, we can use the following steps:
1. Find out Tara's current taxable income, which is $20,000.
2. Evaluate the tax rate applicable to her income level using a tax table or tax brackets. Let's assume for this example that her tax rate is 20%.
3. Calculate the total tax she will owe on her current taxable income by multiplying her taxable income by the tax rate: $20,000 * 0.20 = $4,000.
4. Subtract the tax amount from her current taxable income to determine her after-tax income: $20,000 - $4,000 = $16,000.
5. Calculate the additional income Tara needs to earn in order to have $5000 after taxes by subtracting her desired after-tax amount from her current after-tax income: $5,000 - $16,000 = -$11,000.
Based on these calculations, it appears that no matter how much additional income Tara earns, she would not be able to have $5000 after taxes if her current taxable income is indeed $20,000. It is important to review the tax brackets and rates applicable to Tara's specific jurisdiction for more accurate calculations.