Final answer:
To calculate Alex's Federal Income Tax (FIT), subtract the allowance from the weekly earnings to determine the taxable income. Using the appropriate tax table, find the tax owed based on the taxable income. Alex's FIT, if he claims 1 allowance and earns $358.23 per week, is $30.00.
Step-by-step explanation:
To calculate Alex's Federal Income Tax (FIT) if he claims 1 allowance and earns $358.23 per week, we need to determine Alex's taxable income and then apply the appropriate tax rate. The amount of taxable income is determined by subtracting the allowance from the weekly earnings. In this case, the taxable income is $358.23 - $80.77 = $277.46 per week.
Using the tax brackets for single filers in 2021, let's refer to the IRS tax table. According to the tax table, for taxable income between $250 and $300, the tax owed is $7.50. Since Alex's taxable income falls in this range, his Federal Income Tax is $7.50 per week. Therefore, the correct answer is c) $30.00.