Answer: The correct answer is H.
Step-by-step explanation: The first step is to calculate how much he is going to pay 28% on. The difference between $3,775 and $3,523 = $252.
The formula to calculate his total taxes = .28 x $252 + $699.65.
$70.56 + $699.65 = $770.21, which is the total federal taxes that he needs to pay.
Next, to determine the amount he will receive you need to subtract the taxes from his gross income. $3,775 - $769.65 = $3,004.79 Net Income