Andrew earns 45,300 in taxable income annually and pays federal income taxes 5,345.40 what is Andrew net federal income tax rate
2 answers:
<h2>Information</h2>
<h2>Explanation</h2>
<h2>Solution</h2>
Taxable income (annual): $45,300
Fed. income tax: $5,345.40
<h2>Explanation</h2>
You want to find the net federal income tax rate (which is a percentage)
Therefore, you find out $5,345.40 is what percent of $45,300 (put this as an equation, with x being on the taxable income side, so:
5,345.40 = 45,300x
Divide 45,300 by both sides, so the right side cancels out and:
5,345.40 ÷ 45,300 = 0.118
Convert 0.118 into a percentage (multiply it by 100)
0.118 x 100 = 11.8%
<h2>Solution</h2>
The net federal income tax rate is 11.8%
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