Question

Jill lived and worked in North Carolina for the entire 2013 tax year. Her adjusted gross income was $81,000 and she qualifies for the standard deduction of $3000 and exemption of $2000. Use the following 2011-2013 NC tax rate schedule (taken from http://www.dor.state.nc.us/taxes/individual/rates.html) to calculate her 2013 NC tax. If your filing status is single; and taxable income is more than: but not over: your tax is: $ 0 $12,750 6% OF THE NC TAXABLE INCOME AMOUNT ON FORM D-400 $12,750 $60,000 $765 + 7% OF THE AMOUNT OVER $12,750 $60,000 _______ $4,072.50 + 7.75% OF THE AMOUNT OVER $60,000 Jill's 2013 NC tax is: $ (Round to the nearest dollar.) What is Jill's effective tax rate? [Tax paid divided by taxable income] % (Write as a percent, rounded to one decimal place.)

Answer 1

	NAME OF TAX PAYER	JILL
	TAX YEAR	2013
	STATE	NORTH CALORINA
		(FIGURES IN $)
	GROSS INCOME	81,000
	LESS; EXEMPTION	2,000
	LESS:STANDARD DEDUCTION	3,000
	NET TAXABLE INCOME	76,000
	TAX CALCULATION:
	ON FIRST $ 12750 @ 6%	765.00	(12750*6%)
	ON NEXT $47250 @ 7%	3,307.50	(60000-12750)*7%
	ON BALANCE $16000 @ 7.75%	1,240.00	(76000-12750-47250)*7.75%
	TOTAL TAX	5,312.50
	EFFECTIVE TAX RATE	7.0	CALCULATED BY DIVIDING TOTAL TAX = $ 5,312.50 BY TAXABLE INCOME=$ 76,000