Question

In 2018, Yolanda paid $4,526 in Social Security tax. If the Social Security tax rate was 6.2% to the maximum income of $128,400 that year, what was Yolanda’s taxable income?

Answer 1

Answer:

$73000

Step-by-step explanation:

Given: Social security tax paid by Yolanda is $4562.

         6.2% tax to be paid on earning to the maximum income of $128400.

Lets assume Yolanda´s income be `x`.

Now, calculating the taxable income of Yolanda

∴ $62\% \times x= \ 4526$

⇒ $\frac{62}{100} \times x= 4526$

Cross multiplying both side

⇒ x= $\frac{4526\times 100}{6.2}$

∴x= $73000

∴ Yolanda´s taxable income is $73000.