To determine Emma's federal income tax (FIT) withholding, we need to consider her annual salary, pay frequency, filing status, and the standard withholding allowances.
Given that Emma earns an annual salary of $84,400 and is paid biweekly, we can calculate her gross biweekly salary by dividing the annual salary by the number of pay periods in a year. Assuming there are 26 pay periods in a year for biweekly payments:
Gross biweekly salary = Annual salary / Number of pay periods
= $84,400 / 26
= $3,246.15 (rounded to two decimal places)
Next, we need to determine Emma's withholding allowances based on her filing status. Since she selected "married filing jointly" and is using the standard withholding, the default number of allowances for this status is usually higher compared to single or married filing separately. However, the specific number of allowances can vary based on personal circumstances.
As of my knowledge cutoff in September 2021, the standard withholding allowances for married filing jointly were as follows:
First allowance: $4,300
Additional allowances: $4,400
Please note that tax laws can change, and it's advisable to consult the latest IRS guidelines or use an online tax calculator to get accurate withholding information.
To calculate Emma's FIT withholding, we'll subtract her allowances from her gross biweekly salary and apply the appropriate tax rates. For simplicity, let's assume Emma has one withholding allowance:
Total allowances = First allowance + Additional allowances
= $4,300 + $4,400
= $8,700
Taxable income = Gross biweekly salary - Total allowances
= $3,246.15 - $8,700
= -$5,453.85 (negative because allowances exceed the salary)
Since the taxable income is negative, Emma's FIT withholding should be $0. In this case, no federal income tax will be withheld from her biweekly paychecks. However, please note that Emma may still owe taxes when filing her annual tax return if her other sources of income or deductions are not accounted for in her withholding calculations.