Question

Greg earned 20,500 this year and had1,500 of federal income taxes withheld from his salary. Greg is single and 30 years old. Assuming that Greg will have a total tax liability of 1,000 (and thus will receive a500) refund, what will be the amount of his tax refund?

1) 500
2) 1,000
3) 1,500
4) 2,000

Answer 1

Greg's tax refund is calculated by subtracting his tax liability from his withheld taxes, which gives us $500 as the refund amount. Therefore, the correct answer is option 1) $500.

Step-by-step explanation:

The subject of this question is related to the understanding of how federal income taxes are calculated and refunded, specifically within the Mathematics realm focusing on practical application of percentages and numerical reasoning.


Given the scenario where Greg has earned $20,500 this year and had $1,500 of federal income taxes withheld, and assuming his total tax liability is $1,000, we can determine how much of a refund Greg will receive. To find the tax refund amount, we subtract the total tax liability from the taxes withheld:

• Taxes Withheld: $1,500
• Tax Liability: $1,000

Therefore, Greg's refund will be calculated as follows:

Refund = Taxes Withheld - Tax Liability
Refund = $1,500 - $1,000
Refund = $500

Hence, the correct answer for the amount of Greg's tax refund is option 1) $500.