curtis just received a raise at work increasing his salary by $8,500. he knows that an increase in salary…

curtis just received a raise at work increasing his salary by $8,500. he knows that an increase in salary will increase the amount of federal income taxes withheld from his paycheck. which of the following statements best describes the effect his raise will have on state income tax withholdings? a. state income tax is unrelated to federal, he will see no change in his state withholding. b. since he is having more withheld for federal, he will have less withheld for state so that he pays the same amount in the end. c. state income tax is usually a set percentage of federal income tax. with an increase in federal he will see an increase in state withholding. d. since he is making more money, the state government will take advantage of his raise and charge him more income tax. his state withholding will increase. please select the best answer from the choices provided

curtis just received a raise at work increasing his salary by $8,500. he knows that an increase in salary will increase the amount of federal income taxes withheld from his paycheck. which of the following statements best describes the effect his raise will have on state income tax withholdings? a. state income tax is unrelated to federal, he will see no change in his state withholding. b. since he is having more withheld for federal, he will have less withheld for state so that he pays the same amount in the end. c. state income tax is usually a set percentage of federal income tax. with an increase in federal he will see an increase in state withholding. d. since he is making more money, the state government will take advantage of his raise and charge him more income tax. his state withholding will increase. please select the best answer from the choices provided

Answer

Brief Explanations:

State income tax is based on an individual's income. When income increases, assuming a progressive - or at least non - decreasing tax rate structure, the state income tax withholding will increase as the state government taxes the additional income. State income tax is not directly related to federal income tax in the ways described in options a, b, and c.

Answer:

D. Since he is making more money, the state government will take advantage of his raise and charge him more income tax. His state withholding will increase.