Question

Mr. Donald Heffernan, a 35 year old account manager At Wells Fargo has gross annual income after all deductibles of $85,000. Mrs. Heffernan quit her job at Walmart to take care of their twin kids, Luke and Christine. So, Mr. Heffernan is the only income earner at his household. Mr. Heffernan is filing income using the following “Married filing jointly” tax rate schedule.

1- Mr. Heffernan’s net annual income is (show calculations)

2- Mr. Heffernan’s net monthly income is (show calculations)

Not over Tax rate Taxable income over $0 18,451 74,901 151,201 230,451 411,501 464.851 18,450 74.900 151,200 230,450 411,500 464,850 10% 15% 25% 28% 33% 35% 39.6%

Answer 1

Mr. Donald Heffernan lies in the slab $74,901 - $1,51,200.

Hence, Tax = $18,450 * 10% + ($74,900 - $18,450) * 15% + ($85,000 - $74,900) * 25%
   = $12,837.50

Net Income = $85,000 - $12,837.50

= $72,162.50