Math Is Fun Forum

jon17

Member

Registered: 2009-09-01

Posts: 3

Taxable income calculations

Hello everyone

I am having trouble understanding this question. Can you please show me how to solve this problem.

Taxible income                    tax on this income

$1-$6000                            Nil                     
$6001-$21600                     17 cents for each $1 over $6000
$21 601-$52 000                 $2652 + 30 cents for each $1 over $21 600
$52001-$62500                   $11 772  + 42 cents for each $1 over $52 000
$62 501 and above             $16 182 + 47 cents for each $1 over $62 500

Given the Medicare levy is 1.5 % of the taxable income, how much in the total tax (income tax plus the Medicare levy) has to be paid on a taxable income of $69 860

Thank you I really appreciate help

bobbym

bumpkin

From: Bumpkinland

Registered: 2009-04-12

Posts: 109,606

Re: Taxable income calculations

Hi jon17;

Last edited by bobbym (2009-09-01 01:25:45)

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In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.

jon17

Member

Registered: 2009-09-01

Posts: 3

Re: Taxable income calculations

Thank you Bobbym

Please can you solve this simple taxable income problem so i can have a better understanding for the previous one.

What is the taxable income if the gross income is $32,450, allowable work deductions add to $125 and $280 is donated to recognised charities?

Thanks

bobbym

bumpkin

From: Bumpkinland

Registered: 2009-04-12

Posts: 109,606

Re: Taxable income calculations

Hi jon17;

First, do you agree that the first 6000 was not taxable income? So therefore medicare's levy was only on (68960-6000)= 62960.

Last edited by bobbym (2009-09-01 01:41:10)

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In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.