3. The reported wages are realized income or gross income?
Neither
Realized Income
Gross Income
4. You are looking at your W2 and see that your local wages were $40,000 and the amount of local tax withheld was $600. What percentage rate was withheld?
1.5%
1.0%
2.4%
If you post your answers, we'll be glad to check them for you.
To determine whether reported wages are realized income or gross income, you can refer to the definitions of these terms.
Realized income refers to the amount of income that has been received or earned during a specific period. It takes into account all sources of income, including wages, interest, dividends, and capital gains.
On the other hand, gross income refers to the total income earned before any deductions or taxes are applied. This includes all sources of income, such as wages, bonuses, rental income, and investment gains.
Based on the given options, neither realized income nor gross income is the correct answer.
Moving on to the next question, to determine the percentage rate that was withheld from your local wages, you can use the formula:
Percentage rate withheld = (Amount withheld / Local wages) * 100
From the information given, the amount of local tax withheld is $600, and the local wages are $40,000. Plugging these values into the formula, we get:
Percentage rate withheld = ($600 / $40,000) * 100
Calculating this, we find that the percentage rate withheld is 1.5%. Therefore, the correct answer is 1.5%.