Ellen Newman has an income of $18,150 and claims 5 exemptions. The amount allowed for each exemption is $1,000. Her state tax is
5%. How much state tax must be withheld this year?
1 answer:
State tax is computed by first subtracting the amount of exemptions
(5*$1000=$5000) from annual income and then multiplying it by the state
tax.
($18150-$5000)*5%= $657.50
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