Answer parts 1 through 4 regarding two job offers Rita has. The first position is in State A. Rita would earn $50,000 a year, and she could purchase a starter duplex in the older part of the city for about $80,000. Property taxes equal about 3.0% of the assessed value, and the assessed value is normally close to 85% of the market value. The state sales tax rate is 5% and state income taxes average 3%. The second position is in State B. Rita would earn $65,000 a year, and she could purchase a starter duplex in the older part of the city for about $140,000. Property taxes equal about 4.5% of the assessed value, and the assessed value is normally close to 55% of the market value. The state sales tax rate is 6.5% and state income taxes average 4.5%. Click here to view page 1 of the portion of income tax table. Click here to view page 2 of the portion of income tax table. 1. Calculate the difference in the cost of living between the two locations based only on the differences in sales tax, income tax, and property tax. Assume $22,000 of taxable purchases for this excercise. The cost of living is estimated to be higher 2. Using the answers from part 1, what percentage of the difference in annual salaries does this additional cost represent? The percentage of the salary difference represented by additional taxes is %. (Round to two decimal places as needed.) 3. Rita receives a new offer from the employer in State A that includes a 12% signing bonus based on her expected first-year income. Compute the federal income taxes due for both states. In State A, use her new total income along with a standard deduction of $5,900. In State B, use her income of $65,000 but with itemized deductions totaling $8,100. Based on the taxable income for State A, Rita's federal income tax due is $ Based on the taxable income for State B, Rita's federal income tax due is $ 4. Based on the new job offer in State A that includes the signing bonus and the answers to parts 1 through 3, which job should Rita accept? Rita should accept the job in because it provides $ additional wages when the cost of living is factored in. Enter your answer in each o State B xes. State A More Info TABLE 20-1 Portion of Income Tax Table--Continued If line 43 (taxable And you are income is At But least less Single Married Married Head than joiniy sepa- house- rally hold Your tax is- 41,000 41,000 41.050 6,981 5,304 6,381 5,546 41,050 41,100 6,394 5311 6,394 5,554 41,100 41,1506,406 5319 6,406 5,561 41,150 41,200 6,419 5,326 6,419 41,200 41,250 6,431 5,334 6,431 5,576 41,250 41,300 6,444 5,341 6,444 5,584 41,300 41.350 6.456 5,349 6.456 5,591 41,350 41,400 6,469 6,856 6,469 5,599 41,400 41,450 6,481 5,364 6,481 5,606 41,450 41,500 6,494 5,371 6,494 5,614 41,500 41,550 6.506 5379 6,506 5621 41,550 41,600 6,519 5,386 6,519 5,629 41,600 41,650 6,531 5,394 6,531 5,636 41.650 41.700 6,544 5.401 6,544 5,644 41,700 417506,556 5,409 6,556 5,651 41,750 41,800 6,569 5,416 6,569 5,659 2011 Tax Table - Continued If line 43 (taxable And you are Income) is- At But Single Married Married Head least less filing filing pf a than jointly sepe house- rafely hold Your tax is- 47,000 47.000 47,050 7,881 6,204 7,881 6.524 47,050 47,100 7,894 6,211 7,894 6,536 47,100 47,150 7.906 6,219 7.906 6.549 47,150 47,200 7,019 6,226 7,919 6,561 47,200 47.250 7,981 6,234 7,981 6,574 47.250 47.300 7.944 6241 7944 6586 47.300 47.350 7,966 6249 7,966 6599 47,350 47.400 7,969 6,256 7,969 6,611 47,400 47,450 7,981 6,264 7,981 6,624 47.450 47.500 7.994 6.271 7.994 6,636 47.500 47.550 8,006 6,279 8,006 6,649 47,550 47,600 8,019 6,286 8,019 6,661 47,600 47,650 8,081 6,294 8,081 6,674 47.650 47.700 8,044 6301 8,044 6.686 47.700 47.750 8.066 6,309 8,066 6,699 47,750 47,800 8,069 6,316 8,069 6,711 If line 43 taxable And you are income is- At But least less Single Married Married Head than jonity sepe touse- rafely hold Your tax is- 44,000 44.000 44.050 7131 5,754 7,131 5,996 44.050 44.100 7,144 5761 7,144 6,004 44.100 44.150 7 156 5769 7 156 6,011 44.150 44,200 7,169 5,776 7,169 6,019 44,200 44.250 7,181 5,784 7,181 6,026 44.250 44.300 7 194 5791 7194 6,034 44300 44.350 7,206 5.799 7206 6.041 44,350 44,400 7,219 5,806 7219 6,049 44,400 44,450 7,231 5,814 7,231 6,056 44.450 44.500 7,244 5821 7,244 6064 44.500 44.550 7,256 5829 7.256 6071 44,550 44.600 7,269 5,836 7,269 6,079 44,600 44.650 7,281 5,844 7,281 6,086 44.650 44.700 7.294 5.851 7294 6.094 44.700 44.750 7,306 5,859 7 306 6,101 44,750 44,800 7,319 5,866 7,319 6,109 5,569 Print Done i - X More Info TABLE 20-1 Portion of Income Tax Table Continued rately 2011 Tax Table-Continued If line 43 (taxable And you are income) is - At But Single Mamed Married Head least less filing filing jointly sepe house- hold Your tax is 50,000 50,000 50,050 8,631 6,654 8,631 7,274 50,050 50,100 8,644 6,661 8,644 7,286 50,100 50,150 8,656 6.669 8,656 7,299 50,150 50,2008,669 6,676 8,669 7,311 50,200 50,250 8,681 6,684 8,681 7,324 50,250 50,3008,694 6,691 8,694 7,336 50, 300 50,350 8.706 6.699 8.706 7349 50,350 50,400 8,719 6,706 8,719 7,361 50,400 50,450 8,731 6,714 8,731 7,374 50,450 50,500 8,744 6,721 8,744 7,396 50,500 50,550 8,756 6,729 8,756 7,399 50,550 50,600 8,769 6,736 8,769 7,411 50,600 50,650 8,781 6,744 8,781 7,424 50,650 50,700 8.794 6.251 8.794 7.436 50,700 50,750 8,806 6,759 8,806 7.449 50,750 50,800 8,819 6,766 8,819 7,461 If line 43 (taxable And you are income) is - At But Single Married Married Head least less filina filing than jointly sepe pouse rally hold Your tax is- 53,000 53,000 53,050 9,381 7,104 9,381 8,024 53,050 53,100 9,394 7 111 9,394 8,036 53,100 53,150 9,406 71199,406 8,049 53,150 53,200 9,419 7,126 9,419 8,061 53,200 53,250 9,431 7,134 9,431 8,074 53,250 53,300 9,444 7,141 9,444 8,086 53,300 53,350 9.456 7149 9.456 8,099 53,350 53,400 9,469 7,156 9,469 8,111 53,400 53,450 9,481 7,164 9,481 8,124 53,450 53,500 | 9,494 7,171 9,494 8,136 53,500 53,550 9,506 7,179 9,506 8,149 53,550 53,600 9,519 7,186 9,519 8,161 53,600 53,650 9,531 7,194 9,531 8,174 53,650 53.700 9,544 Z 2019,544 8.186 53,700 53.750 9,556 7,209 9,556 8,199 53,750 53,800 9,569 7,216 9,569 8,211 If line 43 taxable And you are income) is- At But least Single Married Married Head less filing filing pf a than jonty Sepa- house rately hold Your tax is- 56,000 56.000 56,050 10,131 7,554 10,131 8,774 56,050 56,100 10,144 7,561 10,144 8,786 56,100 56,150 10,156 7,569 10,156 8,799 56,150 56,200 10,169 7,576 10,169 8,811 56,200 56,250 10,181 7,584 10,181 8,824 56.250 56,300 10,194 7,591 10,194 8,836 56.300 56,350 10,206 7.599 10,206 8.849 56,350 56,400 10,219 7,606 10,219 8,861 56,400 56,450 10,281 7,614 10,231 8,874 56,450 56,500 10,244 7.621 10,244 8,888 56,500 56,550 10,256 7,629 10,256 8,899 56,550 56,600 10,269 7,636 10,269 8,911 56,600 56,650 10,281 7,644 10,281 8,924 56.650 56.700 10294 7.651 10,294 8936 56.700 56,750 10,306 7,659 10,306 8,949 56.750 56,800 10,319 7,666 10,319 8,961 Print Done Answer parts 1 through 4 regarding two job offers Rita has. The first position is in State A. Rita would earn $50,000 a year, and she could purchase a starter duplex in the older part of the city for about $80,000. Property taxes equal about 3.0% of the assessed value, and the assessed value is normally close to 85% of the market value. The state sales tax rate is 5% and state income taxes average 3%. The second position is in State B. Rita would earn $65,000 a year, and she could purchase a starter duplex in the older part of the city for about $140,000. Property taxes equal about 4.5% of the assessed value, and the assessed value is normally close to 55% of the market value. The state sales tax rate is 6.5% and state income taxes average 4.5%. Click here to view page 1 of the portion of income tax table. Click here to view page 2 of the portion of income tax table. 1. Calculate the difference in the cost of living between the two locations based only on the differences in sales tax, income tax, and property tax. Assume $22,000 of taxable purchases for this excercise. The cost of living is estimated to be higher 2. Using the answers from part 1, what percentage of the difference in annual salaries does this additional cost represent? The percentage of the salary difference represented by additional taxes is %. (Round to two decimal places as needed.) 3. Rita receives a new offer from the employer in State A that includes a 12% signing bonus based on her expected first-year income. Compute the federal income taxes due for both states. In State A, use her new total income along with a standard deduction of $5,900. In State B, use her income of $65,000 but with itemized deductions totaling $8,100. Based on the taxable income for State A, Rita's federal income tax due is $ Based on the taxable income for State B, Rita's federal income tax due is $ 4. Based on the new job offer in State A that includes the signing bonus and the answers to parts 1 through 3, which job should Rita accept? Rita should accept the job in because it provides $ additional wages when the cost of living is factored in. Enter your answer in each o State B xes. State A More Info TABLE 20-1 Portion of Income Tax Table--Continued If line 43 (taxable And you are income is At But least less Single Married Married Head than joiniy sepa- house- rally hold Your tax is- 41,000 41,000 41.050 6,981 5,304 6,381 5,546 41,050 41,100 6,394 5311 6,394 5,554 41,100 41,1506,406 5319 6,406 5,561 41,150 41,200 6,419 5,326 6,419 41,200 41,250 6,431 5,334 6,431 5,576 41,250 41,300 6,444 5,341 6,444 5,584 41,300 41.350 6.456 5,349 6.456 5,591 41,350 41,400 6,469 6,856 6,469 5,599 41,400 41,450 6,481 5,364 6,481 5,606 41,450 41,500 6,494 5,371 6,494 5,614 41,500 41,550 6.506 5379 6,506 5621 41,550 41,600 6,519 5,386 6,519 5,629 41,600 41,650 6,531 5,394 6,531 5,636 41.650 41.700 6,544 5.401 6,544 5,644 41,700 417506,556 5,409 6,556 5,651 41,750 41,800 6,569 5,416 6,569 5,659 2011 Tax Table - Continued If line 43 (taxable And you are Income) is- At But Single Married Married Head least less filing filing pf a than jointly sepe house- rafely hold Your tax is- 47,000 47.000 47,050 7,881 6,204 7,881 6.524 47,050 47,100 7,894 6,211 7,894 6,536 47,100 47,150 7.906 6,219 7.906 6.549 47,150 47,200 7,019 6,226 7,919 6,561 47,200 47.250 7,981 6,234 7,981 6,574 47.250 47.300 7.944 6241 7944 6586 47.300 47.350 7,966 6249 7,966 6599 47,350 47.400 7,969 6,256 7,969 6,611 47,400 47,450 7,981 6,264 7,981 6,624 47.450 47.500 7.994 6.271 7.994 6,636 47.500 47.550 8,006 6,279 8,006 6,649 47,550 47,600 8,019 6,286 8,019 6,661 47,600 47,650 8,081 6,294 8,081 6,674 47.650 47.700 8,044 6301 8,044 6.686 47.700 47.750 8.066 6,309 8,066 6,699 47,750 47,800 8,069 6,316 8,069 6,711 If line 43 taxable And you are income is- At But least less Single Married Married Head than jonity sepe touse- rafely hold Your tax is- 44,000 44.000 44.050 7131 5,754 7,131 5,996 44.050 44.100 7,144 5761 7,144 6,004 44.100 44.150 7 156 5769 7 156 6,011 44.150 44,200 7,169 5,776 7,169 6,019 44,200 44.250 7,181 5,784 7,181 6,026 44.250 44.300 7 194 5791 7194 6,034 44300 44.350 7,206 5.799 7206 6.041 44,350 44,400 7,219 5,806 7219 6,049 44,400 44,450 7,231 5,814 7,231 6,056 44.450 44.500 7,244 5821 7,244 6064 44.500 44.550 7,256 5829 7.256 6071 44,550 44.600 7,269 5,836 7,269 6,079 44,600 44.650 7,281 5,844 7,281 6,086 44.650 44.700 7.294 5.851 7294 6.094 44.700 44.750 7,306 5,859 7 306 6,101 44,750 44,800 7,319 5,866 7,319 6,109 5,569 Print Done i - X More Info TABLE 20-1 Portion of Income Tax Table Continued rately 2011 Tax Table-Continued If line 43 (taxable And you are income) is - At But Single Mamed Married Head least less filing filing jointly sepe house- hold Your tax is 50,000 50,000 50,050 8,631 6,654 8,631 7,274 50,050 50,100 8,644 6,661 8,644 7,286 50,100 50,150 8,656 6.669 8,656 7,299 50,150 50,2008,669 6,676 8,669 7,311 50,200 50,250 8,681 6,684 8,681 7,324 50,250 50,3008,694 6,691 8,694 7,336 50, 300 50,350 8.706 6.699 8.706 7349 50,350 50,400 8,719 6,706 8,719 7,361 50,400 50,450 8,731 6,714 8,731 7,374 50,450 50,500 8,744 6,721 8,744 7,396 50,500 50,550 8,756 6,729 8,756 7,399 50,550 50,600 8,769 6,736 8,769 7,411 50,600 50,650 8,781 6,744 8,781 7,424 50,650 50,700 8.794 6.251 8.794 7.436 50,700 50,750 8,806 6,759 8,806 7.449 50,750 50,800 8,819 6,766 8,819 7,461 If line 43 (taxable And you are income) is - At But Single Married Married Head least less filina filing than jointly sepe pouse rally hold Your tax is- 53,000 53,000 53,050 9,381 7,104 9,381 8,024 53,050 53,100 9,394 7 111 9,394 8,036 53,100 53,150 9,406 71199,406 8,049 53,150 53,200 9,419 7,126 9,419 8,061 53,200 53,250 9,431 7,134 9,431 8,074 53,250 53,300 9,444 7,141 9,444 8,086 53,300 53,350 9.456 7149 9.456 8,099 53,350 53,400 9,469 7,156 9,469 8,111 53,400 53,450 9,481 7,164 9,481 8,124 53,450 53,500 | 9,494 7,171 9,494 8,136 53,500 53,550 9,506 7,179 9,506 8,149 53,550 53,600 9,519 7,186 9,519 8,161 53,600 53,650 9,531 7,194 9,531 8,174 53,650 53.700 9,544 Z 2019,544 8.186 53,700 53.750 9,556 7,209 9,556 8,199 53,750 53,800 9,569 7,216 9,569 8,211 If line 43 taxable And you are income) is- At But least Single Married Married Head less filing filing pf a than jonty Sepa- house rately hold Your tax is- 56,000 56.000 56,050 10,131 7,554 10,131 8,774 56,050 56,100 10,144 7,561 10,144 8,786 56,100 56,150 10,156 7,569 10,156 8,799 56,150 56,200 10,169 7,576 10,169 8,811 56,200 56,250 10,181 7,584 10,181 8,824 56.250 56,300 10,194 7,591 10,194 8,836 56.300 56,350 10,206 7.599 10,206 8.849 56,350 56,400 10,219 7,606 10,219 8,861 56,400 56,450 10,281 7,614 10,231 8,874 56,450 56,500 10,244 7.621 10,244 8,888 56,500 56,550 10,256 7,629 10,256 8,899 56,550 56,600 10,269 7,636 10,269 8,911 56,600 56,650 10,281 7,644 10,281 8,924 56.650 56.700 10294 7.651 10,294 8936 56.700 56,750 10,306 7,659 10,306 8,949 56.750 56,800 10,319 7,666 10,319 8,961 Print Done
