Question

state income tax rates
taxable income\ttax rate
first $20,000\t2%
next $20,000\t4%
over $40,000\t6%
if you and your spouse make $96,000 combined and the state allows a $1,000 exemption for each person, what is the amount of your annual state income tax?

Explanation:

Step1: Calculate total exemptions

Total exemptions = $1,000 × 2 = $2,000

Step2: Find taxable income

Taxable income = $96,000 - $2,000 = $94,000

Step3: Compute tax on first[SSE Completed, Client Connection Error][SSE Completed, Client Connection Error][LLM SSE On Failure]

Answer:

$4,540