Consider gross earnings of $59,000. • The standard deduction is $12,000 and itemized deduction is $11,000. • Social security tax rate is 6.2%; Medicare tax rate is 1.45%. How much is the taxable income (for federal income tax)?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 1BCRQ
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D3
Consider gross earnings of $59,000.
• The standard deduction is $12,000 and itemized deduction is $11,000.
• Social security tax rate is 6.2%; Medicare tax rate is 1.45%.
How much is the taxable income (for federal income tax)?
Transcribed Image Text:Consider gross earnings of $59,000. • The standard deduction is $12,000 and itemized deduction is $11,000. • Social security tax rate is 6.2%; Medicare tax rate is 1.45%. How much is the taxable income (for federal income tax)?
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