Allison is paid $1,650 per week. What is the amount of federal income tax withhe

Question

Allison is paid $1,650 per week. What is the amount of federal income tax withheld from Allison’s paycheck under the following conditions? Assume that her employer uses the percentage method of withholding. Use withholding allowance and percentage method tables. (Round your intermediate computations and final answers to 2 decimal places.)

A. Allison is single and claims two withholding allowances.

B. Allison is married and claims two withholding allowances.

C. Allison is single and claims no withholding allowance.

I don't understand how to calculate these.

Explanation / Answer

A. ANSWER :-

2 (allowances) × $77.90 weekly allowance = $155.80

$1650 (gross wage) - $155.80 (allowance) = $1494.20 (wages subject to withholding)

$1494.20 - $200.00 = $1294.20 (amount in excess of $200)

( $1294.20 × 25%) + 100.50 = $424.05

B. Answer:-

2 (allowances) × $77.90 weekly allowances = $155.80

$1650 (gross wage) - $155.80 = $1494.20 (wages subject to withholding)

$1494.20 - $200 = $1294.20 (amount in excess of $200)

($1294.20 ×15%) + $35.90 = $230.03

C. ANSWER :

$1650 - $77.90 = $1572.10

$1572.10 - $200 = $1372.10 ( amount in excess of $200)

(1372.10 × 25%) + 100.50 = $443.525

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