If your salary is $42,500 and your federal income taxes are 10% of your salary, how much money will you owe this year in federal taxes? Assume you have no deductio
Income $42,500 Less: Deductions 0 Taxable Income $42,500 Tax rate x 10% Tax payable $4,250
Bear in mind that since the problem is silent, I have assumed that deductions based on marital status, exemptions, PERS or TIAA/CREF retirement contributions are all equivalent to zero (0).
