Abby lives in a state in which the state income tax rate is equal to 5.38% of federal taxable income. Abby's federal income tax is equal to 19.6% of her federal taxable income. if Abby owes $8,880.17 in federal income tax, his state income tax is $2,437.52
Abby’s federal income tax is equal to 19.6% of her federal taxable income.
If Abby owes $8,880.17 in federal income tax .
19.6% is written in the decimal form = 0.196
Thus equation becomes
0.196 × Federal taxable income = Federal income tax
0.196 × x = 8880.17
0.196x = 8880.17
x = $45306.9898
Thus federal taxable income is $45306.9898 .
As given
Abby lives in a state in which the state income tax rate is equal to 5.38% of federal taxable income.
5.38% is written in the decimal form = 0.0538
Thus
State income tax = 0.0538 × Federal taxable income
0.0538 × $45306.9898
= $2437.52 (Approx)
Therefore the Abby owe in state income tax is $2437.52
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