Ramon Alvarez, of Nome, Alaska, signed up for his employer's flexible spending account plan primarily because he can use the money to pay for unreimbursed medical expenses for himself and his disabled son. Ramon is in the 15 percent marginal tax bracket; pays Social Security payroll taxes of 7.65%, and pays a 4 percent state income tax rate. How much will he save in income taxes by particpating in the program this year in the amount of $3,000? How much would Ramon save if he was in the 25 percent federal marginal tax bracket?
Ramon Alvarez, of Nome, Alaska, signed up for his employer's flexible spending account plan primarily because he can use the money to pay for unreimbursed medical expenses for himself and his disabled son. Ramon is in the 15 percent marginal tax bracket; pays Social Security payroll taxes of 7.65%, and pays a 4 percent state income tax rate. How much will he save in income taxes by particpating in the program this year in the amount of $3,000? How much would Ramon save if he was in the 25 percent federal marginal tax bracket?
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 66IIP
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Ramon Alvarez, of Nome, Alaska, signed up for his employer's flexible spending account plan primarily because he can use the money to pay for unreimbursed medical expenses for himself and his disabled son. Ramon is in the 15 percent marginal tax bracket; pays Social Security payroll taxes of 7.65%, and pays a 4 percent state income tax rate. How much will he save in income taxes by particpating in the program this year in the amount of $3,000? How much would Ramon save if he was in the 25 percent federal marginal tax bracket?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
