Angelo has a yearly salary of $65,800. If he pays a 15% federal tax, a 6.2% social security tax, a 6% unemployment tax, and a 3.5% state tax per year, determine the following: a) Angelo’s yearly taxes. b) Angelo’s monthly take home pay.

Angelo has a yearly salary of $65,800. If he pays a 15% federal tax, a 6.2% social security tax, a 6% unemployment tax, and a 3.5% state tax per year, determine the following: a) Angelo’s yearly taxes. b) Angelo’s monthly take home pay.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter7: Tax Credits

Section: Chapter Questions

Problem 12MCQ

See similar textbooks

Related questions

Q: Janie graduates from high school in 2020 and enrolls in college in the fall. Her parents (who file a…

A: American Opportunity tax credit is the credit for qualified education expenses, eligible for…

Q: Ramon Alvarez, of Nome, Alaska, signed up for his employer's flexible spending account plan…

A: Given: Tax rates that are being paid by Ramon are 15%, 7.65% and 4% respectively. Amount = $ 3,000

Q: Assume that your starting salary will be $55,000 per year, and assume that you have no additional…

A: Gross Annual income = A = $$ 55,000Tax rate, T = 27%Net annual income, B = A x (1 - T) = $ 55,000 x…

Q: Keith is age 35 and earns $110,000 p.a. His employer contributes 12% of this salary to his nominated…

A: Superannuation is like a retirement plan in which employer as well as employee contributes towards…

Q: Alex makes $80,000 per year and pays about 30% of his gross monthly income in federal and state…

A: Federal and state tax are the mandatory deductions from the income. Income left after tax will be…

Q: Ed earned $500 of interest income last year on a $10,000 certificate of deposit at his local bank.…

A: Interest Income = 500 Investment in Certificate of Deposit = 10,000 Tax Rate on Ordinary Income =…

Q: Jason did some tax planning, because he had a large gain on the sale of amazon stock. He calculated…

A: Salary income is chargeable on due basis or receipt basis whichever is earlier. Following is the…

Q: Jessica makes $24,000 a year, but receives weekly paychecks. If 12% of her checks is withheld for…

A: Gross pay = Total annual pay /no of pay periods Total deduction /withholding =Federal tax +FICA…

Q: Does Fatima make more money if she takes the raise? If so, how much more will Fatima make a year if…

A: Income tax: A fee charged by the government of the country on the taxable income earned by the…

Q: Jordan earns $55,945 per year and is paid semi-monthly how much would jordan pay for Medicare tax?

A: Tax refers to the amount charged by the government on the earnings earned by the individual or…

Q: Nicole’s employer, Poe Corporation, provides her with an automobile allowance of $26,000 every other…

A: Fringe benefits include: Health insurance Life insurance Tuition assistance Cafeteria subsidies,…

Q: David Ashley Parker, of Powder Springs, CO, is in the 22 percent marginal tax bracket and is…

A: Future value is the total worth of the amount that is deposited today or in series of payments for…

Q: Marc Batchelor, a self-employed sales consultant, has estimated annual earnings of $309,000 this…

A: Given: Annual Earnings of Mr. Marc = $ 309,000 Social Security Rate = 12.4 % Medicare = 2.9 %…

Q: When Should Michael Pay Housing Costs? On April 1 of next year, Michael is purchasing a $225,000…

A: The LTV ratio is calculated using the following formula: LTV =Principal amountMarket Value of the…

Q: Ann earns $95,000 per year in salary. She pays 25% federal income tax, 6% state income tax, 6.2%…

A: The question is based on the calculation of gross monthly income and net monthly income . Net income…

Q: Self-employed persons can make contributions for their retirement into a special tax-deferred…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: A single person has taxable income of $52,000 per year. He contributes $1,000 to his company’s…

A: A flexible spending account is a saving account which provides specific tax benefits to the holder…

Q: Gus is the self-employed owner of Four Paws Pet Supply. His estimated annual earnings are $43,280.00…

A: Introduction:- The following basic information as follows under:- Gus is the self-employed owner of…

Q: In 2021, I have an income of $49,000 from my job as a salesman. I contribute $8,000 to a traditional…

A: Federal income taxes is the tax amount which a tax payer has to be paid to government and which is…

Q: 16. Gus is the self-employed owner of Four Paws Pet Supply. His estimated annual earnings are…

A: Social security tax and Medicare taxes are to be paid each quarter by self employed person.

Q: Marc Batchelor, a self-employed sales consultant, has estimated annual earnings of $303,000 this…

A: The estimated tax must M sent to IRS is $29,769.75 (each quarter).

Q: After graduation, Charmaine have been offered an engineering job with a large company that has…

A: Time value concept It tells that having money today is of more value than that of receiving the…

Q: Suppose Gretchen's health insurance has a $500 annual deductible. Gretchen is responsible for 20…

A: A copay (or copayment) is a one-time cost that you pay when you see your doctor or fill a…

Q: If he does this, how much will he owe in taxes and penalties on this distribution if he is in the…

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Q: Alice has been in a defined-contribution pension scheme since she was 35 and will retire in one…

A: In this question, as students said that he know the answer of the question but he doesn't know that…

Q: additional amount of funds

A: Defined contribution plan refers to the workplace which is common for all the employers in which…

Q: Your mother's employer offers a tax-deferred retirement plan (a 401-b plan, which was authorized by…

A: Future value is a sum of money invested today will become over time, at a rate of interest. FV =…

Q: David Ashley Parker, of Powder Springs, CO, is in the 22 percent marginal tax bracket and is…

A: Working note:

Q: Suppose people can live in two periods. In the first period people are young and they Work. Each…

A: Social security :- In the United States, the Social Security programmed protects workers from losing…

Q: John, 38, makes $125,000 per year. He has a 35 year old wife, Nancy, and a daughter who just turned…

A: Please find the answer to the above question below:

Q: Fatima is about to get a raise at her job and she will go from being paid $37,000 a year to being…

A: Personal Exemptions: Along with the standard deduction, personal exemptions provide that only income…

Q: Jim has a house payment of $2,000 per month of which $1,700 is deductible interest and real estate…

Q: Peter's gross income is $80,000 a year, and Wendy earns $100,000 a year. They put $3,000 each into…

A: a. Gross income = Peter’s gross income + Wandy gross income = $80000 + $100000 = $180000 b.…

Q: Matt recently deposited $41,250 in a savings account paying a guaranteed interest rate of 2.6…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: April paid $144,000 for an annuity that would immediately pay $1,000 per month. Her life expectancy…

A: Income that is not subject to income taxes, such as municipal bonds or coupons, is referred to as…

Q: Reggie makes $400 per week and has a cash taxable benefit of $5 00 per pay He is paid weekly How…

A: 1: Calculate the basic pay-period exemption Divide the basic yearly exemption ($3,500 for 2021) by…

Q: Dick DeWolf and his wife have a total taxable income of $60,000 this year and file a joint federal…

A: Future value of taxable income return is the value of taxable income at a specified future date…

Q: Kevin is 38 years old, and his current gross monthly income is $3,800. Given an average personal tax…

A: Net income is defined as the income left with the business entity or an individual after paying off…

Q: how much money can they save in taxes each year if capitalize on the tax-deductibility of interest…

A: Interest paid = $35,000*10% = $3500 Interest is tax deductible, means we can deduct interest paid…

Q: Calculate the paychecks below: 1. Bob is paid an annual salary of $50,000 and taxes are 20%. a. How…

A: Wages: Wages are the earnings of the employees for their work to the company they serve. These are…

Q: Mary, who is married and the mother of three, is 35 years and expects to work until 75. She earns…

A: The life insurance is a protection for family members of insured as they received the insurance…

Q: Dmitri has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Carolyne is paid $2,000.00 biweekly. This year, to date, she has earned $23,300.00. What will be the…

A: Payment of $2000 is done biweekly, which means paycheck is received biweekly. Calculation of total…

Q: Calculating the tax on the taxpayer's income, Ahmed only

A: Taxpayer's are those individuals, businesses, or organizations who pay off some portion of their…

Q: Suppose you return to college and earn an MBA, after which you get a middle-management position with…

A: Please see the next step for solution:-

Concept explainers

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.

Question

If Angelo has a yearly salary of $65,800. If he pays a 15% federal tax, a 6.2% social security tax, a 6% unemployment tax, and a 3.5% state tax per year, determine the following:

a) Angelo’s yearly taxes.

b) Angelo’s monthly take home pay.

c) How much Angelo should budget for hisrent.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Mark makes $82,420 per year and pays about 23% of his gross monthly income in federal and state taxes. He wants to find an apartment to rent. Estimate how much he can afford to pay for rent each month. Then determine how much money he will have after taxes and rent are paid
b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly income. After researching the market, he determines he can obtain a 30-year home loan for 6.95% annual interest per year, compounded monthly. His monthly property tax payment will be approximately $150. What is the maximum amount he can pay for a house if his disposable monthly income is $2000? A person wants to buy a home. He has been advised A worker borrow $3500 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. Compare how much money the worker will save or lose on the transaction. An instrument can be bought for $10,000 cash or for d) $2000 down and payments of $750 per year for 15 years. What is the annual interest rate for the time payments? (Hint: you can assume interest rate between 4 and 5 % )
Ruth has asked for help in determining whether she should receive her $32,500 bonus check in the current year or next year. In the current year, her marginal tax rate is 24% and she anticipates she will be in the 32% marginal tax bracket next year. What advice can you give Ruth? Net revenue from bonus $ Current year Ruth should choose to receive her bonus in the ✓year. Next year
John is trying to decide whether to contribute to a Roth IRA or a traditional IRA. He plans on making a $5,000 contribution to whichever plan he decides to fund. He currently pays tax at a 32 percent marginal income tax rate, but he believes that his marginal tax rate in the future will be 28 percent. He intends to leave the money in the Roth IRA or traditional IRA for 30 years, and he expects to earn a 6 percent before-tax rate of return on the account. (Use Table 1.) Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Problem 13-78 Part b (Static) b. How much will John accumulate after taxes if he contributes to a traditional IRA (consider only the funds contributed to the traditional IRA)?
Ramit has contributed $10,000 to his Roth IRA during the last 5 years. The current balanceis $12,000. Ramit wants to withdraw $5,000 from his Roth IRA account so that he can travelto Europe this summer. If he does this, how much will he owe in taxes and penalties on thisdistribution if he is in the 25% tax bracket?
Daniel knows that he can withdraw up to a maximum of $35,000 from his Registered Retirement Savings Plan (RRSP) under the Home Buyers Plan (HBP). He knows that he has to pay at least 1/15th of the amount that he borrows. Danieľ's RRSP market value is $45,680 on the day that he decides to withdraw $25,700 under the HBP for the down payment on his new home. What is the minimum annual amount that Daniel must repay to his RRSP on the amount he withdraws from the HBP? A $3,045.33 В $2,333.33 $5,000.00 D $1,713.33 E $3,433.33
A father wants to set aside money for his son's future college education. Money can be deposited in a bank account that pays 8.1% per year, compounded annually. What equal deposits should be made by the father, on his son's 5th through 17th birthdays, in order to provide $6900 on the son's 18th, 19th, 20th, and 21st birthdays?
If John’s annual disposable income would increase to P 312,000, what is the proportionate share of John’s budget that will be allocated for his retirement
14. Future Value of a Tax Savings. On December 30, you decide to make a $2,500 charitable donation. If you are in the 24 percent tax bracket and you expect to itemize your deductions, how much will you save in taxes for the current year? If you deposit that tax savings in a savings account for the next five years at 4 percent, what will be the future value of that account?
Suppose that Thomas Lee is enrolled in a defined contribution plan in which the employer contributes $8,000 each year. Thomas is earning $80,000 this year and his tax rate is 30 percent (which is not expected to change). Assume that the before- tax rate of return is 8 percent. (a) What is the additional amount of funds that Thomas will have when he reaches retirement in 10 years as a result of this year's service? (b) Suppose that Thomas's employer is planning to reduce half of their contribution to the defined contribution plan. Assume that Thomas would like to keep his retirement funds the same as they would have been with the defined contribution plan. If Thomas's only opportunity to save for retirement is in a nonqualified savings plan (no tax benefits), how much would Thomas need to receive in additional salary (which he would then save) to achieve his objective?
David Abbot is buying a new house, and he is taking out a 30-year mortgage. David will borrow $201,000 from a bank, and to repay the loan he will make 360 monthly payments (principal and interest) of $1,158.97 per month over the next 30years. David can deduct interest payments on his mortgage from his taxable income, and based on his income, David is in the 32% tax bracket. a. What is the before-tax interest rate (per year) on David's loan? b. What is the after-tax interest rate that David is paying?
Matt recently deposited $41,250 in a savings account paying a guaranteed interest rate of 2.6 percent for the next 10 years. If Matt expects his marginal tax rate to be 22.00 percent for the next 10 years, how much interest will he earn after-tax for the first year of his investment? How much interest will he earn after-tax for the second year of his investment if he withdraws enough cash every year to pay the tax on the interest he earns? How much will he have in the account after 4 years? How much will he have in the account after 7 years?