Taxes, Deductions, Exemptions, Tax Rates and Which Job to Take?
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Rick, who is single, has been offered a position as a city landscape consultant.
The position pays $125,000 in cash wages. Assume Rick files single and is entitled
to one personal exemption. Rick deducts the standard deduction instead of
itemized deductions.
a) What is the amount of Rick's after-tax compensation (ignore payroll taxes)?
b) Suppose Rick receives a competing job offer of $120,000 in cash compensation
and nontaxable (excluded) benefits worth $4,000. What is the amount of
Rick's after-tax compensation for the competing offer? Which job should he
take if taxes were the only concern?
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Solution Summary
An expert answers questions about after tax money and which job is better from a tax standpoint. One job is for one hundred and twenty thousand dollars and one is for one hundred and twenty-five thousand dollars. Two specific questions (one multi-part) are answered in this entry. An explanation is included as well.
Solution Preview
a. 75,168.00
b. 79,524.00, b. If taxes were the only concern then Rick should take job b. ...
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