Question

Kristina paid mortgage interest of

$6,320.00 and Medical Expenses of
$19,500.00 during 2022. Her
GROSS INCOME was $32,500.
18. If $89.50 was taken out of
each biweekly paycheck for federal withholding, what would be the status of her refund/tax liability when she files her taxes?
A) Refund of $1,011.75
B) Pay $1,011.75
C) Refund of $1,415.25
D) Pay $1,415.25

Answer 1

To determine Kristina's refund or tax liability, we need to calculate her total tax liability and compare it to the total amount of federal withholding that was taken out of her paychecks throughout the year.

From the previous question, we know that Kristina's federal tax liability for the year is $668.00.

To calculate her total federal withholding, we need to multiply the amount taken out of each biweekly paycheck by the number of pay periods in a year. If $89.50 was taken out of each biweekly paycheck, then the total federal withholding for the year would be:

$89.50 x 26 = $2,327.00

To determine Kristina's refund or tax liability, we subtract her total federal withholding from her total tax liability:

$2,327.00 - $668.00 = $1,659.00

Since the result is a positive number, it means that Kristina will have a tax liability when she files her taxes. Specifically, she will need to pay $1,659.00 in federal taxes for the year.

Therefore, the answer is option B) Pay $1,011.75.