Paying Your Taxes Math Quiz

Explanation
To calculate the income left after deducting taxes, we need to subtract the total tax amount from the gross income. The total tax amount can be found by multiplying the effective tax rates with the gross income.

Federal tax = 16.3% of $96,000 = $15,648
FICA tax = 7.65% of $96,000 = $7,344
State tax = 4.5% of $96,000 = $4,320

Total tax = $15,648 + $7,344 + $4,320 = $27,312

Income left = Gross income - Total tax = $96,000 - $27,312 = $68,688

Therefore, the correct answer is $68,688.

Explanation
If every month you make a loan payment on time, and your credit score goes up by 3 points, then to raise your credit score from 640 to 700, you would need to increase it by 60 points. Since each payment increases the score by 3 points, it would take 20 months (60 divided by 3) to increase the score by 60 points. Therefore, the correct answer is 20 months.

Explanation
To calculate the amount saved in Federal Income Taxes, we need to find 25% of the total amount invested in IRA and 401k. The total amount invested is $4,500 + $2,400 = $6,900. 25% of $6,900 is $1,725. Therefore, the correct answer is $1,725.

Explanation
The average credit score can be calculated by adding up all the scores and dividing by the number of scores. In this case, the sum of the three credit scores is 680 + 695 + 705 = 2080. Dividing this sum by 3 (the number of scores) gives us an average of 693.

Explanation
To calculate the taxes, we need to determine the income within each tax bracket. The income falls within the 12% tax bracket, so we calculate 12% of the income from $9,526 to $38,700, which is $3,870. Next, we calculate the income within the 22% tax bracket, which is $19,190 ($57,890 - $38,700). We calculate 22% of $19,190, which is $4,222. Adding the taxes from both brackets, we get a total of $8,092. However, since the income is less than $82,500, we subtract the amount not taxed from the total, which is $369 ($82,500 - $57,890). The final amount of taxes to be paid is $8,092 - $369 = $7,723.

Explanation
If the credit score of the person is better than 40% of the population and the person's neighbor has a credit score, it means that the neighbor's score is worse than the person's score. Therefore, the neighbor's score must be better than the remaining 60% of the population. Since the neighbor's score is better than the remaining 60% of the population, it implies that his score is better than 30% of the population (60% divided by 2).

Explanation
Since the deduction for medical expenses is only applicable for expenses that exceed 6% of your income, and in this case, 6% of $42,000 is $2,520, which is higher than the medical expenses of $567, you cannot deduct any portion of your medical expenses. Therefore, the correct answer is $0.

Explanation
Increasing your credit score by 50 points will reduce the interest rate on your $10,000 car loan by 1 percent. This means that instead of paying the original interest rate on the loan, you will now be paying a lower interest rate. The amount you can save in the first year would be equal to 1 percent of the loan amount, which is $10,000. Therefore, the correct answer is $100.

Explanation
The refund amount is $1,877. This can be calculated by subtracting the tax withholdings ($5,333) from the amount of taxes owed ($3,456). Since the tax withholdings were more than the taxes owed, the excess amount is refunded to the taxpayer. In this case, the refund amount is $1,877.

Explanation
The average tax rate is calculated by dividing the total tax paid ($6,200) by the total income earned ($34,000) and then multiplying by 100 to get the percentage. In this case, the calculation would be (6,200 / 34,000) * 100 = 18.23%. Since the question asks for the answer in whole numbers, the average tax rate would be rounded down to 18%.