An income is taxable is such income falls into a category where a proportion of the income is removed, as tax. To have an extra $5000 after tax, Tara must save $6173.
Given that:
[tex]Earnings = \$20000[/tex] --- normal earnings
[tex]Amount = \$5000[/tex] ---- the amount needed
From the complete question, the tax rate for earnings between $18201 and $37000 is 19%.
Let the additional amount be x.
So, the equation that calculates the amount needed (after tax) is:
[tex]x(1 - 19\%) = 5000[/tex]
Express as decimal
[tex]x(1 - 0.19) = 5000[/tex]
[tex]x(0.81) = 5000[/tex]
Make x the subject
[tex]x = \frac{5000}{0.81}[/tex]
[tex]x = \$6173[/tex]
Hence, she needs to make an extra of $6173 to save $5000
Read more about taxable income at:
https://brainly.com/question/17347618
