Question

Daniel has a yearly income of $41,300 and claims 4 exemptions. The amount allowed for each exemption is $900. His local tax is4 3/4%. How much local income tax should be withheld from his weekly earnings? (Round your answer to the nearest cent.)

Answer 1

$34.37.

Explanation:

To calculate Daniel's local income tax withholding, we first need to determine his taxable income. To do this, we subtract the value of his exemptions from his yearly income: $41,300 - (4 x $900) = $37,500.

Next, we need to convert the local tax rate of 4 3/4% to a decimal by dividing it by 100: 4 3/4% = 0.0475.

Finally, we can calculate Daniel's local income tax withholding by multiplying his taxable income by the local tax rate: $37,500 x 0.0475 = $1,793.75.

To find the amount of local income tax that should be withheld from Daniel's weekly earnings, we simply divide his total local income tax by the number of weeks in a year: $1,793.75 / 52 = $34.37. Therefore, Daniel's local income tax withholding from his weekly earnings should be $34.37.