Question

If your salary is $42,500 and your federal income taxes are 10% of your salary, how much money will you owe this year in federal taxes? Assume you have no deductions.
5000
1000
4250
2000

Answer 1

Your federal income taxes are taxes that are taken by the federal government based on the amount of money you make during the year. These taxes come out on each paycheck and are deducted from your salary. At the end of the year, you are able to file a tax return and claim things against the money the government has taken from you to receive some back. This is known as filing your Federal Tax Return. When solving this question, we are assuming there are no deductions and we know that the federal income taxes are 10% of $42,500.

To solve, take $42,500 and multiply it by 10%, this will give you the total amount of income tax owed which is $4,250.

Answer 2

I will owe $4250 which is 10% of the total salary.