Kathy makes $66,000 annually and pays a net federal income tax rate of 18.85%. How much does she expect to pay in taxes every year?

Kathy makes $66,000 annually and pays a net federal income tax rate of 18.85%. How much does she expect to pay in taxes every year?

• A. $10,500
• B. $12,441
• C. $13,200
• D. $14,000

Answer: (B)

To determine how much Kathy expects to pay in taxes annually, we start with her annual income of $66,000 and apply her net federal income tax rate of 18.85%. This calculation involves multiplying her income by the tax rate expressed as a decimal. First, convert the tax rate from a percentage to a decimal: 18.85% = 0.1885 Next, calculate the tax liability by multiplying her income by the tax rate: $66,000 * 0.1885 = $12,441 This way, Kathy can expect to pay approximately $12,441 in federal income taxes for the year. This answer accurately reflects the combination of her income and applicable tax rate, demonstrating how tax calculations are typically performed.

To determine how much Kathy expects to pay in taxes annually, we start with her annual income of $66,000 and apply her net federal income tax rate of 18.85%. This calculation involves multiplying her income by the tax rate expressed as a decimal.

First, convert the tax rate from a percentage to a decimal:

18.85% = 0.1885

Next, calculate the tax liability by multiplying her income by the tax rate:

$66,000 * 0.1885 = $12,441

This way, Kathy can expect to pay approximately $12,441 in federal income taxes for the year. This answer accurately reflects the combination of her income and applicable tax rate, demonstrating how tax calculations are typically performed.