Federal Income Tax Withholding Bob Dunn\'s weekly gross earnings for the present

Question

Federal Income Tax Withholding Bob Dunn's weekly gross earnings for the present week were $2,740. Dunn has two exemptions. Using the wage bracket withholding table below with a $63 standard withholding allowance for each exemption, what is Dunn's federal income tax withholding? Round your answer to two decimal places Table for Percentage Method of Withholding WEEKLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is tax to withhold is: Not over $51 The amount of income $0 But not over- $198 $653 $1,533 $3,202 $6,916 Over- of excess over- $51 $198 $653 $1,533 $3,202 $6,916 10% $14.70 plus 15% $82.95 plus 25% $302.95 plus 28% $770.27 plus 33% $1,995.89 plus 35% $51 $198 $653 $1,533 $3,202 $6,916

Explanation / Answer

Gross earnings = $2,740

Exemption = $63 x 2 = $126

Taxable income = Gross earnings - Exemption = $2,740 - $126 = $2,614

$2,614 lies in the bracket "over $1,533 but not over $3,202

Therefore,

Federal income tax withholding = $302.95 + [($2,614 - $1,533) x 28%] = $605.63

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