Mr. Hernandez, who was a resident of State X for only 12 months last year, had a taxable income of ...
Mr. Hernandez, who was a resident of State X for only 12 months last year, had a taxable income of $22,500 for the year. If the state tax rate were 4 percent of the year’s taxable income prorated for the proportion of the year during which the taxpayer was a resident, what would be the amount of Mr. Hernandez’s State X tax for last year?
Answer/Solution
$900
Steps/Work
Total tax for the year = 22,500 x 4% = 900
As stated Annual tax is prorated as per the duration of stay.
Prorated Tax = 900 (12/12) = 900
Answer A
As stated Annual tax is prorated as per the duration of stay.
Prorated Tax = 900 (12/12) = 900
Answer A