1,000$
Calculate the taxes you would have to pay on this salary. Be sure to show your calculations.
First, find your annual income tax based on this rate schedule: ______________
2013 U.S. Federal Income Tax Rates for Single Adults
• 10% on taxable income from $0 to $8,925, plus
• 15% on taxable income over $8,925 to $36,250, plus
• 25% on taxable income over $36,250 to $87,850, plus
• 28% on taxable income over $87,850 to $183,250, plus
• 33% on taxable income over $183,250 to $398,350, plus
• 35% on taxable income over $398,350 to $400,000, plus
• 39.6% on taxable income over $400,000.
To calculate the taxes you would have to pay on a salary of $1,000, we need to determine your taxable income first.
Since your salary is $1,000, it falls into the 10% tax bracket, as it is within the range of $0 to $8,925.
To calculate the taxes, we need to multiply your taxable income by the tax rate. In this case, the tax rate is 10%.
Taxable income = Salary - Tax Deductions
Taxable income = $1,000 - $0
Taxable income = $1,000
Taxes = Taxable income * Tax rate
Taxes = $1,000 * 0.10
Taxes = $100
Therefore, you would have to pay $100 in taxes on a salary of $1,000.