Question

1. Estimate Take Home Pay using tax brackets for 2019

Personal Exemption: $-0-

Standard Deduction: $12,200

ASSUME Gross Income = Adjusted Gross Income = $140,000.

ASSUME: Single filer, no adjustments, no dependents, will take the standard deduction

ASSUME: Only deduction for state income taxes is rental deduction; assume individual deducts the maximum allowable amount of $3,000.

State Income Tax: 5.05%

State Personal Exemption (single filer) = $4,400

Calculate the following -- (SHOW YOUR WORK:)

• Total Taxable Income:
• Total Federal Income Tax:  
• Total State Income Tax:
• Total Social Security Tax:
• Total Medicare Tax:   
• Total Federal and State Income Taxes:  
• Total Social Security and Medicare:  
• Total Income Tax and Payroll Taxes:  
• Take Home Pay or After Tax Income:  

Answer 1

Answer :

Gross pay (Given)	$140,000.00
Less : Standard deduction (Given)	$12,200.00
Net pay for federal taxes (Gross - Standard deduction)	$127,800.00
Federal tax (working note)	$24,846.50
Less : Deduction for state taxes	-
State personal income deduction	$4,400.00
Rental deduction	$3,000.00
Net pay for state taxes	$120,400.00
State tax @5.05%	$6,080.20
Social security tax 6.2% on gross pay (6.2% for employee)	$8,680.00
Medicare tax 1.45% on gross pay	$2,030.00

a	Total taxable income (Gross pay $140,000 - Standard deduction $12,200)	$127,800.00
b	Total federal income tax (Working note)	$24,846.50
c	Total state income tax (State tax 5.05% on 120,400)	$6,080.20
d	Total social security tax (working note)	$8,680.00
e	Total medicare tax (Working note)	$2,030.00
b+c	Total federal and state income taxes	$30,926.70
d+e	Total security tax and medicare tax	$10,710.00
b+c+d+e	Total income tax and payroll taxes	$41,636.70
Gross pay - (b+c+d+e)	Take home pay or after tax income	$98,363.30

Working Notes :

	Tax Rate	Gross pay	Tax
Social security	6.2	$140,000	$8,680
Medicare	1.45	$140,000	$2,030

Federal Tax Rate 2019

Tax Bracket	Tax Rate	Tax
0 - 9700	10%	970.00
9701 - 39475	12%	3,573.00
39476 - 84200	22%	9,839.50
84201 - 127800	24%	10,464.00
	Total tax	24,846.50