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?

Question

Mathematics

Brenda Ochoa

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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Anahi · Answer 1

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