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user100 [1]
3 years ago
7

Juanita is the self-employed owner of Juanita's Linens. Her estimated annual earnings are $73,040 and she expects to pay 27% of

this amount in income tax. What will be her quarterly estimated tax payment for the third quarter? (For self-employed persons, social security tax is 12.4% of wages up to $106,800, and Medicare tax is 2.9% of all wages.)
Mathematics
1 answer:
adell [148]3 years ago
7 0

Answer:

  $7724

Step-by-step explanation:

Her estimated quarterly income is $73,040/4 = $18,260.

Her estimated tax rate is ...

  27% + 12.4% + 2.9% = 42.3%

This tax rate applied to her estimated earnings gives an estimated quarterly tax of ...

  $18,260 × 0.423 = $7723.98

  ≈ $7724 . . . . . taxes are rounded to the nearest dollar

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