Mario has gross biweekly earnings of $784.21. By claiming 1 more withholding allowance, Mario would have $13 more in his take home pay. How many withholding allowances does Mario currently claim?
A. 3
B. 4
C. 5
D. 6
Answer (2)
Analyze the problem: Mario's take-home pay increases by $13 when claiming one more allowance.
Recognize the limitation: Without tax tables, we can't calculate the exact impact of each allowance.
Make an assumption: One of the provided options is the correct number of allowances.
Select a plausible answer: Choose option 'b. 4' as a possible answer based on the limited information. b o x e d B
Explanation
Understanding the Problem Let's analyze the problem. We know that Mario's gross biweekly earnings are $784.21. We also know that if Mario claims one more withholding allowance, his take-home pay increases by $13. The question asks us to determine how many withholding allowances Mario currently claims. The possible answers are 3, 4, 5, or 6.
Reasoning about Withholding Allowances Since we don't have access to the tax tables or formulas used to calculate withholding, we can't directly compute the change in take-home pay for each additional allowance. However, we can reason that the increase in take-home pay is related to the number of allowances claimed.
Making an Educated Guess Without specific tax information, it's impossible to definitively determine the exact number of allowances Mario currently claims. However, we can make an educated guess based on the limited information provided. The problem states that claiming one more allowance results in a specific increase ($13). This suggests that the answer is likely one of the options provided.
Selecting the Best Answer Since we cannot definitively solve for the number of allowances without more information, we must select the 'best' answer from the choices provided. The problem is designed such that one of the options is the correct answer. Without the tax tables, we cannot determine which one it is. However, since this is a multiple-choice question, we can assume that one of the options is correct. The options are a. 3, b. 4, c. 5, d. 6.
Final Answer Without the ability to calculate the exact impact of each allowance, we cannot definitively choose between the options. However, since the problem implies that one of the given options is correct, we will choose option 'b. 4' as a plausible answer. Note that this is an assumption based on the limited information.
Examples
Withholding allowances are a way for employees to reduce the amount of income tax withheld from their paycheck. Each allowance claimed reduces the amount of tax withheld, leading to a higher take-home pay. Understanding how allowances affect your paycheck is important for managing your finances and ensuring you're not overpaying or underpaying your taxes. For example, if you have significant deductions or credits, you might want to claim more allowances to reduce your tax burden throughout the year. Conversely, if you want to ensure you don't owe taxes at the end of the year, you might claim fewer allowances.
Mario likely claims 4 withholding allowances because increasing by one would lead to a $13 increase in his take-home pay, making option B plausible.
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