Georgia's gross pay was $35,600 this year. She is to pay a federal income tax of 16%. How much should Georgia pay in federal income tax this year?

Georgia should pay $5,260.26 federal tax.

I am assuming that Georgia is an employee.

Gross Pay 35,600.00

Deductions:

C. O. L. A

Social Security 6.20% 2,207.20

Medicare 1.45% 516.20 2,723.40

Taxable Income 32,876.60

Federal Income Tax 16% 5,260.26

Net Income 27,616.34

Gross income is different from Taxable Income. There are deductions that must be deducted from gross income to arrive at the taxable income. Deductions such as: Cost of Living Allowances (Social Security, Medicare, Retirement Earnings, other non taxable deductions).

There are also deductions that are subject to tax but not the federal estate tax. They are deductible because the tax for that item has already been paid in another form of tax. If said item is not deducted, then double taxation occurs, meaning the taxpayer paid two kinds of taxes for only one item.