Refer to Scenario 20-3. A family earning $46,000 before taxes would have how much after-tax income?

A) −$4,500
B) $34,500
C) $41,500
D) $50,500

After-Tax Income

The amount of net income left after all federal, state, and withholding taxes have been deducted from an individual's earnings.

Tax Liability

The total amount of taxes owed by an individual or a corporation to the tax authorities.

Negative Income Tax

A proposed system of social security that guarantees a minimum income to all, where those earning below a certain amount receive supplemental pay from the government instead of paying taxes.