An Air-Conditioning Installer Works Part Time and Has a Taxable

question 5

Short Answer

An air-conditioning installer works part time and has a taxable income of $15,775.00. The state income tax is 6% of the taxable income. How much money does the installer pay in state taxes?

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Definitions:

Adjusted Gross Income

An individual's total gross income minus specific deductions. It's used as the basis for calculating taxable income.

Tax-deferred

An investment in which taxes on the principal and/or earnings are delayed until the funds are withdrawn, commonly seen in retirement accounts like 401(k)s and IRAs.

Accumulation Period

The time frame in which an investment, such as a annuity, accumulates interest or income before disbursement or annuitization.

Distribution Period

The time frame over which payments are made from an investment, retirement plan, or insurance policy to the beneficiary.