Question: Based on 2023-24 tax bracket, you will be paying 12% federal income tax and 4.4% state income tax…

Based on 2023-24 tax bracket, you will be paying 12% federal income tax and 4.4% state income tax for filing jointly.

a. What will be the combined federal and state tax you will pay on your family income of $85,853?

Federal income tax =

State income tax =

Combined income tax =

Solution

To solve this problem, we’ll calculate the federal and state income taxes separately and then combine them. First, calculate the federal income tax: Federal income tax rate is 12%. \[ \text{Federal income tax} = 0.12 \times 85853 = 10302.36 \] Next, calculate the state income tax: State income tax rate is 4.4%. \[ \text{State income tax} = 0.044 \times 85853 = 3777.53 \] Now, calculate the combined income tax: \[ \text{Combined income tax} = 10302.36 + 3777.53 = 14079.89 \] Federal income tax = 10302.36 State income tax = 3777.53 Combined income tax = 14079.89