Question

1. Rick, who is single, has been offered a position as a city landscape consultant. The position pays $120,000 in cash wages. Assume Rick files single. Rick claims the standard deduction instead of itemized deductions. What is the amount of Rick’s after-tax compensation (ignore payroll taxes)?

2. Rick, who is single, has been offered a position as a city landscape consultant. The position pays $115,000 in cash compensation and nontaxable (excluded) benefits worth $5,000. Assume Rick files single. Rick claims the standard deduction instead of itemized deductions. What is the amount of Rick’s after-tax compensation (ignore payroll taxes)?

Answer 1

1. the amount of Rick’s after-tax compensation can be calculated as fallows:

PERTICULARS AMOUNT

taxable salary $ 120,000.00

(less)

standard deduction - $ 12000.00

therefore

taxable income   =$ 108,000.00

tax applicable - $ 19,129.50

after tax salary    = $ 100,870.50

(salery received less tax applicable)

2.Assumeing Rick files single. Rick claims the standard deduction instead of itemized deductions. the amount of Rick’s after-tax is:

PERTICULARS AMOUNT

taxable salary $ 115,000.00

(less)

standard deduction -$ 12,000.00

therefore

taxable income = $ 103,000.00

tax applicable - $ 17,929.50

after tax salery = $ 102,070.50

(salery received 120,000 less tax applicable)

NOTE:

IF YOU LIKE MY WORK PLEASE GIVE AN UPVOTE.