Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part II: What State You Live In Another factor that greatly affects your taxes is the state you live in. Different states have different tax

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Part II: What State You Live In Another factor that greatly affects your taxes is the state you live in. Different states have different tax rates for a variety of taxes. In this activity, we will focus exclusively on state income tax rates. (I OREGON To do this, we are going to use the State Tax Calculator Follow these directions: 0 Click on the correct state 0 Enter the tax year 2022, filing status, and the salary value you want to see the income tax for. Leave all other fields blank. 0 Under the \"Yearly" column, find the value for \"[State Name] State Income Tax\" California. California? 6. How much would Marcel pay in state 10. How much would Stephanie pay in income tax? state income tax? Now, what if Marcel lived in Oregon instead? Now, what if Stephanie lived in Oregon 7. How much would Marcel now pay in instead? state income tax? 11. How much would Stephanie now pay in state income tax? 8. How much more is Marcel paying if he lives in Oregon? (Federal taxes are the 12. How much more is Stephanie paying if same in each state) she lives in Oregon? 9. What percentage of his salary is Marcel sacrificing if he lives in Oregon instead 13. What percentage of her salary is of California? Stephanie sacrificing if she lives in (State tax difference/$35,000)*100 Oregon instead of California? (State tax difference/$50,000)*100Part I: Your Salary The biggest variable in the amount of taxes you pay is how much you make. Use Nerdwallet's Federal Income Tax Calculator to compare the two individuals below and see how their tax burdens differ due to a large difference in salary. 4. Meet Marcel Meet Stephanie 0 Marcel is in his firstjob - Stephanie has been after college, working at working at City Center City Center Bank as a Bank for 5 yea rs. She is teller. now an assistant manager. He is not married, nor does he have any She is not married, nor dependents does she have any dependents He will be 23 on Jan 1 of the current year She will be 28 on Jan 1 of the current Marcel's wages (regularly taxed income) year is $35,000 0 Stephanie's wages (regularly taxed income) is $75,000 Neither has withheld any money towards federal or state taxes, and has no unemployment income1 Neither is being claimed as a dependent by their parents or anyone else Neither contributes to a 401(k) or IRA Both will use the standard deduction of $12,950 for tax year 2022 (filing in 2023) l Most people have money withheld from each paycheck to avoid paying a huge bill at the end of every year. We're assuming no withholdings to illustrate the total amount in taxes paid throughout the year. \"Note For this portion of the activity, we are only calculating Marcel and Stephanie's federal taxes. We will tackle state taxes in the next part. _\" 1. Using Nerdwallet Federal Income Tax Calculator, what is the estimate for much this individual owes in taxes? What is this individual's taxable income? What is this individual's effective tax rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Business

Authors: William NickelsJames McHughSusan McHugh

12th Edition

1259929434, 9781259929434

More Books

Students also viewed these Economics questions