To find the amount withheld annually for state tax, let's follow the steps for the given scenario:
1. Identify the Provided Information:
- Gross pay: \[tex]$43,300
- Filing status: Single with 1 dependent
- State income tax rate: 5%
- Exemptions:
- Single: \$[/tex]2,000
- Each Dependent: \[tex]$2,000
2. Calculate Total Exemptions:
The individual is single and has 1 dependent. The exemptions available are:
- Single exemption: \$[/tex]2,000
- Dependent exemption: \[tex]$2,000 per dependent
Since there is 1 dependent, calculate the total exemptions:
\[
\text{Total Exemptions} = \$[/tex]2,000 (\text{single}) + \[tex]$2,000 (\text{dependent}) = \$[/tex]4,000
\]
3. Calculate Taxable Income:
The taxable income is the gross pay minus the total exemptions:
[tex]\[
\text{Taxable Income} = \$43,300 - \$4,000 = \$39,300
\][/tex]
4. Calculate State Tax Annually:
The annual state tax withheld is determined by multiplying the taxable income by the state income tax rate:
[tex]\[
\text{State Tax Annually} = \$39,300 \times 0.05
\][/tex]
Performing the final calculation:
[tex]\[
\text{State Tax Annually} = \$1,965
\][/tex]
Thus, the amount withheld annually for state tax is \$1,965 based on the provided information and exemptions.
