Answered

IDNLearn.com offers a user-friendly platform for finding and sharing answers. Get timely and accurate answers to your questions from our dedicated community of experts who are here to help you.

Taxes Worksheet


Complete the Form

Imagine you're an unmarried adult who is paid twice per month. The federal government withholds $700 in income tax from every paycheck. After the income tax is removed, your paycheck says $2,600.

Fill out this simplified tax form. Do you owe an extra federal income tax? Or does the government owe you a refund?


Income ($)

Action

0-8,349

Calculate 10% of the total Income

8,350-33,949

Calculate 15% of Income over 8,350 then add $835

33,950-82,249

Calculate 25%of the income over 33,950 then add $4675

82,250-171,549

Calculate 28% if Income over 82,250 then add $16,750

171,550-372,949

Calculate 33% of the income over 171,550 then add $41,754

372,950+

Calculate 35% of the income over 372,950 then add$108,216



_________________ 1. Total annual income, before the government withholds any taxes

_______________ 2. Standard deduction: enter $9,350 if single; $18,700 is married filing jointly

_______________ 3. Subtract line 2 from line 1 to find your taxable income

_______________ 4. Annual federal income tax withheld

_______________ 5. Calculate the amount owed on your taxable income (line 3) using Table 1

_______________ 6. If the amount in line 5 is greater than the amount in line 4, subtract 4 from 5. This is the amount you owe.

_______________ If the amount in line 4 is greater than the amount in line 5, subtract 5 from 4. This is the amount of your refund.


Do you owe more tax or will you receive a refund?

___________________________________________________

Sagot :

Anthougoidn

Filling out the simplified tax form and determining if the government owes you a refund or you owe the government is as follows:

1. $85,800 is the Total annual income before the government withholds any taxes.

2. $9,350 is the Standard deduction since the taxpayer is unmarried.

3. $76,450 is the taxable income.

4. $18,200 is the Annual federal income tax withheld.

5. The amount owed on the taxable income (line 3) using Table 1 is $21,406.

6. The taxpayer's tax liability is $3,206 ($21,406 - $18,200).

What is tax liability?

Tax liability refers to the amount of tax that a taxpayer owes the government.

The tax liability should be settled.  However, the government may owe the taxpayer a refund if the computed annual tax is less than the withheld tax.

Data and Calculations:

Total annual income = $85,800 ($2,600 + $700 x 26)

Taxable income = $76,450 ($85,800 - $9,350)

Annual income tax withheld = $18,200 ($700 x 26)

Tax due = $21,406 ($76,450 x 28%) since annual income is above

Thus, there is no tax refund from the government because the tax liability of $3,206 exists after the withholding tax.

Learn more about taxable income at https://brainly.com/question/10137785

#SPJ1

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Discover the answers you need at IDNLearn.com. Thanks for visiting, and come back soon for more valuable insights.