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? Choices
A) $900 B) $720 C) $600 D) $300 E) $60
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   $900nswer $900
<result>A</result>
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?