It’s tax time. Your state income taxes are based on your gross income and the amount of federal income taxes you pay. You have a gross income of $60,000 per year. You only pay taxes on your gross income less your federal income taxes paid. You pay $5,000 federal income taxes. You then pay 0% state taxes on the first $20,000 of remaining income and 5% state taxes on your remaining income above $20,000. Put this problem into the form of an equation and solve for your state income tax.

Question

It’s tax time.  Your state income taxes are based on your gross income and the amount of federal income taxes you pay.  You have a gross income of $60,000 per year.  You only pay taxes on your gross income less your federal income taxes paid.  You pay $5,000 federal income taxes.  You then pay 0% state taxes on the first $20,000 of remaining income and 5% state taxes on your remaining income above $20,000.  Put this problem into the form of an equation and solve for your state income tax.

anonymous · Answer

I just need help setting up the equation

anonymous · Answer

60000-5000 = 55000

20000* 0 + .05(55000-20000)

anonymous · Answer

do you understand what to do sbenner?

anonymous · Answer

looking at what was stated earlier it seems easy enough