Question

Nevan’s gross pay was $45,150 last year. The federal income tax withholding from his pay was 16% of his gross pay. Nevan determined the federal income tax he owes is $6,150. Which of the following is true?

Nevan owes an additional $984 in federal tax.
Nevan owes an additional $1,074 in federal tax.
Nevan will receive a refund of $984.
Nevan will receive a refund of $1,074.

Answer 1

d

Step-by-step explanation:

got it right on test

Answer 2

B.) Nevan owes an additional $1,074 in federal tax.

Step-by-step explanation:

To find your answer, first you need to find what 16% of 45,150 is. In this case, that's 7,224. At this point you know that Nevan is incorrect. To find out *how* incorrect, subtract 6,150 from 7,224. That gives you $1,074, which is how much more he owed than his estimate.