State and Federal Income Taxes Overview

This video lesson reviews state and federal income tax calculations. It begins with an overview of the lesson, followed by instructions on solving a tax problem. The instructor guides students through calculating state income tax using tax brackets and then proceeds to calculate federal income tax. The lesson concludes with a summary of the calculations and instructions for students to submit their work.

What are the two types of taxes discussed in the lesson?

• Excise tax and Value-added tax

• Sales tax and Luxury tax

• State income tax and Federal income tax

• Property tax and Import tax

How do you convert monthly income to annual income?

• Divide by 12

• Multiply by 12

• Multiply by 52

• Divide by 52

What tool is essential for calculating taxes in this lesson?

• Spreadsheet

• Tax software

• Tax advisor

• Calculator

What is the first step in calculating state income tax?

• Multiply income by tax rate

• Identify applicable tax bracket

• Divide income by tax rate

• Subtract deductions

How is the tax amount for each bracket calculated in state income tax?

• Percentage of income exceeding the bracket limit

• Fixed percentage of income within each bracket

• Fixed amount for all brackets

• Percentage of total income

What percentage is used for the 'G' tax bracket in state income tax?

• 10.5%

• 11%

• 10%

• 9.5%

What is the correct sequence for calculating federal income tax?

• Identify bracket, calculate tax for each bracket, sum up

• Calculate total income, apply highest tax rate

• Apply a standard tax rate to the total income

• Sum up all income, divide by number of brackets

Which federal tax bracket does an income of $81,506.28 fall into?

• D

• A

• B

• C

How much federal tax is paid on the $41,506.28 in the 'C' bracket?

• $8,000.00

• $10,000.00

• $7,500.00

• $9,131.38

What is the final step in completing the tax worksheet?

• Taking a photo and submitting

• Reviewing with a tax professional

• Summing state and federal taxes

• Calculating deductions