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Judy Is Self-Employed and Is in the 24% Federal Marginal

Question 12

Multiple Choice

Judy is self-employed and is in the 24% federal marginal tax bracket. If she works an extra 20 hours during the year, billing $175 an hour, how much will her after-tax income increase if her Social Security tax is 6.2% and her Medicare tax is 1.45%? Assume that the state income tax rate is 3.5%. (Round to the nearest whole dollar.)


A) $1,967
B) $2,090
C) $2,270
D) $2,625

Correct Answer:

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