Question

Aaron Priest had a taxable income of $165,000. He figured his tax from the single taxpayer table above.

*(linked below)*


1. find his earned income level

2. entered the base amount = $_______

3. found the amount over $_______ = $_______

4. multiplied line 3 by _______% = $_______

5. added lines 2 and 4 = $_______

6. computing his monthly withholding would be = $_______

Answer 1

#1) Over 160,850 but not over 349,700; #2) 39,149; #3) 160,850; 4150; #4) 33; 1369.50; #5) 40518.50; #6) 3376.54

Explanation:

Aaron earns $165,000. This is between $160,850 and $349,700.

The base amount for this level is $39,149.

The amount of $160,850 is 165000-160850 = $4,150.

Multiplying this amount by 33%, 0.33(4150) = $1369.50.

Adding this to the base amount, 1369.50+39149 = $40,518.50.

Computing this monthly, 40518.50/12 = 3376.541667 ≈ $3376.54.

Answer 2

Aaron Priest, single, taxable income 165,000

1) Earned income tax level: Over 160,850 but not over 349,700

2) base amount : 39,149

3) 33% of the amount over 160,850: 165,000 - 160,850 = 4,150

4) 4,150 * 33% = 1,369.50

5) 39,149 + 1,369.50 = 40,518.50

6) monthly withholding: 40,518.50 / 12 = 3,376.54