Question

Tim had $8,420 deducted from his paychecks in withholdings. he calculated his taxes owed to be $7,952. does he get a refund or owe money, and what is the amount?

Answer 1

Tim will receive a tax refund of $468, as his withholdings of $8,420 exceed his tax liability of $7,952.

Step-by-step explanation:

Tim had $8,420 deducted from his paychecks in withholdings, and he calculated his taxes owed to be $7,952. To determine whether Tim gets a refund or owes money, and the amount, we compare the amount withheld to the amount of taxes owed. If the amount withheld is more than the taxes owed, Tim will receive a refund for the difference. If the amount withheld is less, Tim would owe additional money.

In Tim's case, he has had more withheld from his paycheck than what he owes in taxes. The calculation would be the total withholdings minus the taxes owed:

Refund Amount = Withholdings - Taxes Owed
Refund Amount = $8,420 - $7,952
Refund Amount = $468

Therefore, Tim will receive a tax refund of $468.