Compute the taxable income from the information below:

Gross Income $200,000

Exemptions and Deductions $110,000

Tax Bracket	Marginal Tax Rate
$0 - 8,375	10%
$8,375 - 34,000	15
$34,000 - 82,400	25
$82,400 - 171,850	28
$171,850 - 373,650	33
Over $373,650	35

Using the table, compute the taxes for the taxable income found in Question 1.

What percentage of income is paid in Social Security taxes by a worker earning $40,000?

a. 7.65%

b. 3.65%

c. 10%

d. 15%

What percentage of income is paid in Social Security taxes by a worker earning $80,000?

a. 20%

b. 3.65%

c. 7.65%

d. 15%

Answer rating: 100% (QA)

1 Taxable income 200000 110000 90000 Taxes 8375 1 25625 15 48400 25 7600 28 ... View the full answer