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Use the Exemptions table to find the amount withheld annually for state tax.

1. Gross pay: [tex]\$ 23,760[/tex]
- Married with 3 dependents
- State income tax rate: [tex]4\%[/tex]

\begin{tabular}{|l|l|}
\hline \multicolumn{2}{|c|}{ Exemptions } \\
\hline Single & [tex]\$ 2,000[/tex] \\
\hline Married & [tex]\$ 4,000[/tex] \\
\hline Each Dependent & [tex]\$ 2,000[/tex] \\
\hline
\end{tabular}

2. Gross pay: [tex]\$ 43,300[/tex]
- Single with 1 dependent
- State income tax rate: [tex]5\%[/tex]



Answer :

GinnyAnswer
To find the amount withheld annually for state tax, let's follow the steps for the given scenario:

1. Identify the Provided Information:
- Gross pay: \[tex]$43,300 - Filing status: Single with 1 dependent - State income tax rate: 5% - Exemptions: - Single: \$[/tex]2,000
- Each Dependent: \[tex]$2,000 2. Calculate Total Exemptions: The individual is single and has 1 dependent. The exemptions available are: - Single exemption: \$[/tex]2,000
- Dependent exemption: \[tex]$2,000 per dependent Since there is 1 dependent, calculate the total exemptions: \[ \text{Total Exemptions} = \$[/tex]2,000 (\text{single}) + \[tex]$2,000 (\text{dependent}) = \$[/tex]4,000
\]

3. Calculate Taxable Income:
The taxable income is the gross pay minus the total exemptions:
[tex]\[ \text{Taxable Income} = \$43,300 - \$4,000 = \$39,300 \][/tex]

4. Calculate State Tax Annually:
The annual state tax withheld is determined by multiplying the taxable income by the state income tax rate:
[tex]\[ \text{State Tax Annually} = \$39,300 \times 0.05 \][/tex]

Performing the final calculation:
[tex]\[ \text{State Tax Annually} = \$1,965 \][/tex]

Thus, the amount withheld annually for state tax is \$1,965 based on the provided information and exemptions.

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