Brenda Luai earns $14,260 per year. She is paid 24 times per year and claims 1 exemption. If $19.63 in taxes is withheld from each paycheck, at what rate is she taxed?
$14,260/24 = $594.17
19.63/594.17 = ?
To find the tax rate, we need to determine the percentage of taxes withheld from Brenda Luai's paycheck.
First, let's calculate the total amount of taxes withheld per year.
Since Brenda is paid 24 times per year, we can multiply the amount of taxes withheld per paycheck ($19.63) by the number of paychecks per year:
Total taxes withheld per year = $19.63 * 24
Next, we can calculate Brenda's annual income tax liability by multiplying her yearly salary ($14,260) by the tax rate:
Annual income tax liability = $14,260 * Tax rate
Now, equating the total taxes withheld per year to Brenda's annual income tax liability:
$19.63 * 24 = $14,260 * Tax rate
To solve for the tax rate, we divide both sides of the equation by $14,260:
($19.63 * 24) / $14,260 = Tax rate
Calculating this expression will give us the tax rate at which Brenda Luai is taxed.