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19 For the person below, calculate the FICA tax and income tax to obtain the total tax owed. Then find the overall tax rate on
19
For the person below, calculate the FICA tax and income tax to obtain the total tax owed. Then find the overall tax rate on the gross income, including both FICA and income tax. Assume that the individual is single and takes the standard deduction. A woman earned a salary of $25,000 and received $1200 in interest. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Single up to $9325 up to $37,950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 $4050 Let FICA tax rates be 7.65% on the first $127,200 of income from wages, and 1.45% on any income from wages in excess of $127,200. Her total FICA tax is $ (Round up to the nearest dollar.) Her income tax is $ (Round up to the nearest dollar.) Her total tax owed is $ (Round up to the nearest dollar.) Her overall tax rate is (%. (Round to one decimal place as needed.)Step by Step Solution
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