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19 May, 13:13

Ellen Newman has an income of $18,150 and claims 5 exemptions. The amount allowed for each exemption is $1,000. Her state tax is 5%. How much state tax must be withheld this year?

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  1. 19 May, 17:07
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    State tax is computed by first subtracting the amount of exemptions (5*$1000=$5000) from annual income and then multiplying it by the state tax.

    ($18150-$5000) * 5% = $657.50
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