An income is taxable is such income falls into a category where a proportion of the income is removed, as tax. To have an extra $5000 after tax, Tara must save $6173.
Given that:
--- normal earnings
---- the amount needed
From the complete question, the tax rate for earnings between $18201 and $37000 is 19%.
Let the additional amount be x.
So, the equation that calculates the amount needed (after tax) is:
Express as decimal
Make x the subject
Hence, she needs to make an extra of $6173 to save $5000
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