Question

the nilmor family makes $135,100 annually and has 5 children. the income tax rate is 4.2% and there is a $2,000 exemption for each person. how much is their state income tax?
$5,168.20
$5,886.20
$5,086.20
$5,098.20

Explanation:

Step1: Calculate total exemptions

Assume 2 parents + 5 children = 7 people. Total exemption = $2000 × 7 = $14000.

Step2: Compute taxable income

Taxable income = Annual income - Total exemption = $135100 - $14000 = $121100.

Step3: Calculate income tax

Tax = Taxable income × Tax rate = $121100 × 4.2% = $121100 × 0.042 = $5086.20.

Wait, correction: Wait, maybe the family size is 2 parents + 5 children = 7? Wait $135100 - 7×2000 = 135100-14000=121100. 121100×0.042=5086.20. Oh, the option is there. So the answer is $5,086.20.

Answer:

$5,098.20