An electric device delivers a current of [tex]$1,166$[/tex] gross taxable income every week and has claimed no exemptions. Assuming that you have no other sources of income, what is the amount of income tax withheld each week?
a. $323
b. $337
c. $340
d. $344
Please select the best answer from the choices provided
Answer (2)
The amount of income tax withheld each week for an income of $1,166 and no exemptions is $340. This is determined by looking at the tax withholding table for the appropriate income range and allowances. Thus, the best answer is $340.
;
Identify the correct income range in the table: $1,160 - $1,170.
Find the corresponding withholding amount for 0 allowances: $340.
The amount of income tax withheld each week is $340.
The final answer is $340 .
Explanation
Understanding the Problem We are given a table that shows the amount of income tax withheld each week based on the gross weekly income and the number of withholding allowances claimed. We need to find the amount of income tax withheld for a gross weekly income of $1,166 and 0 withholding allowances.
Finding the Correct Row First, we need to find the correct row in the table. The gross weekly income is $1,166, which falls in the range of at least $1,160 but less than $1,170. So, we will use the second row of the table.
Finding the Correct Column Next, we need to find the correct column. The number of withholding allowances claimed is 0. So, we will use the first column under the heading '0'.
Finding the Withheld Amount Now, we find the value at the intersection of the row ($1,160 - $1,170) and the column (0 withholding allowances). The value is $340.
Final Answer Therefore, the amount of income tax withheld each week is $340.
Examples
Understanding income tax withholding is crucial for managing personal finances. For instance, if you're planning your monthly budget, knowing how much will be withheld for taxes helps you accurately estimate your net income. This knowledge is also useful when evaluating job offers, as it allows you to compare the actual take-home pay from different positions. Additionally, being aware of your withholding amount can help you avoid surprises during tax season, ensuring you're neither underpaying nor overpaying your taxes.
