Question

Last year, Nevan’s gross pay was $45,150. The federal income tax percent that was withheld from his gross pay was 16%. The amount of money that Nevan actually owes the government after deductions is $6,150. Which of the following is true?

a. Nevan is owed a tax refund.
b. Nevan owes additional taxes.
c. The gross pay does not affect the income tax.
d. The amount Nevan owes is less than the amount withheld.

Answer 1

The correct option is a. Nevan is owed a tax refund.

Step-by-step explanation:

The question states that Nevan's gross pay was $45,150 last year and that 16% of that amount was withheld for federal income tax. The amount of money that Nevan actually owes the government after deductions is $6,150. To determine if Nevan is owed a tax refund or if he owes additional taxes, we need to compare the amount withheld to the amount he owes after deductions.

To find the amount withheld for federal income tax, we calculate 16% of $45,150: $45,150 * 0.16 = $7,224. Therefore, Nevan had $7,224 withheld for federal income tax.

Next, we compare the amount withheld ($7,224) to the amount owed after deductions ($6,150). If the amount withheld is greater than the amount owed, Nevan would be owed a tax refund. If the amount owed is greater than the amount withheld, Nevan would owe additional taxes. In this case, $7,224 > $6,150, so Nevan is owed a tax refund.