Question

You are a single person with no dependents, earning a salary of $47,810. You have no adjustments to your income. Use the information provided to find your taxable income. Use this equation:taxable income = gross income – (adjustments + deductions + exemptions)Then find your tax liability. Explain how you found your answer.

Answer 1

The taxable income for that person is $47,810 and the tax liability can be found by multiplying the taxable income by the tax rate. The person does not have any adjustment to his/her salary, therefore all of his salary amounts becomes the taxable income. The tax liability can be found by multiplying the $47,810 with a specific tax rate.