Ashton’s gross pay is $82,000. he receives tax credits of $2,000. he pays total taxes of $4,500. what are his taxable and disposable incomes? ashton’s taxable income is $ and his disposable income is $

84,000 taxable income

79,500 disposable income

Explanation:

you have to add the gross pay and tax credit then minus the taxes.

Taxable income: 82000

Disposable: 79500

Explanation:

The taxes are calculated over someone's gross income. The value that appears on its payslip.

The disposable income, on the other hand, is someone's liquid asset. The actual value someone earns with the taxes deducted.

(so 82000 - (4500 - 2000) = 82000 - 2500 = 79500.)

(that is gross income - (taxes - tax credits) )

Note: The tax credits are not a part of the person's income (since it can't be used to anything other than a discount in taxes).

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