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Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in wages. Assume Ekiya has no dependents.
Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, and she is not eligible for the qualified business income deduction. (Use the tax rate schedules.)
What is the amount of Ekiya's after-tax compensation (ignore payroll taxes)?
2023 Tax Rate Schedules
IndividualsSchedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 11,000 | 10% of taxable income |
$ 11,000 | $ 44,725 | $1,100 plus 12% of the excess over $11,000 |
$ 44,725 | $ 95,375 | $5,147 plus 22% of the excess over $44,725 |
$ 95,375 | $ 182,100 | $16,290 plus 24% of the excess over $95,375 |
$ 182,100 | $ 231,250 | $37,104 plus 32% of the excess over $182,100 |
$ 231,250 | $ 578,125 | $52,832 plus 35% of the excess over $231,250 |
$ 578,125 | $174,238.25 plus 37% of the excess over $578,125 |
\begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{ Description } & \multicolumn{1}{c|}{ Amount } \\ \hline (1) Gross income & $125,000 \\ \hline (2) For AGI deductions & \\ \hline (3) Adjusted gross income & $125,000 \\ \hline (4) Standard deduction & 16,290 \\ \hline (5) Taxable income & $108,710 \\ \hline (6) Income tax liability & \\ \hline After-tax compensation & \\ \hline \end{tabular}
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