Question

glencoe financial math: chapter 2 review
please show your work and round to the nearest cent when necessary.
2.1: federal income tax withheld
for this section, you will need to use pages a2 - a5 of the \finance appendix and answers\ posted on schoology.

1. bill langley is single, claims 1 allowance and earned $913.88 last week. using pages a2 - a5 from \finance appendix and answers\ on schoology, find his federal income tax withheld for the week.
2. stephanie robson is married, claims 3 allowances and earned $1,392.60 this week. using pages a2 - a5, find her federal income tax withheld for the week.
3. trevor hughes is single, claims 0 allowances and earns $433.95 weekly. using pages a2 - a5, find his federal income tax withheld per week.

for problems 4 and 5, use the \percentage method\ by using the following information (pg.130)
each weekly allowance is $63.46.

taxable wage low	taxable wage high	the amount of income tax to withhold is:
$51.00		$14.40 plus (15% of the excess over $195.00)
	$645.00
$195.01		$81.90 plus (25% of the excess over $645.00)
	$1,482.00
$645.01

1. mara jones is single and claims 1 allowance. her gross pay for the week is $51

a.) her taxable wage and b.) her federal income tax withheld using the percentage method

Explanation:

Step1: Calculate Bill Langley's taxable wage

His weekly - earnings are $913.88$ and he claims 1 allowance of $63.46$. Taxable wage = $913.88−63.46 = 850.42$.

Step2: Determine the tax bracket

Since $645.01<850.42\leq1482.00$, the tax is calculated as $81.90+(0.25\times(850.42 - 645.01))$.

Step3: Calculate the tax amount

First, find the excess amount: $850.42−645.01 = 205.41$. Then, calculate the tax: $81.90+(0.25\times205.41)=81.90 + 51.3525\approx133.25$.

Step4: Calculate Stephanie Robson's taxable wage

Her weekly - earnings are $1392.60$ and she claims 3 allowances. Total allowance = $3\times63.46 = 190.38$. Taxable wage = $1392.60−190.38 = 1202.22$.

Step5: Determine the tax bracket for Stephanie

Since $645.01<1202.22\leq1482.00$, the tax is calculated as $81.90+(0.25\times(1202.22 - 645.01))$.

Step6: Calculate Stephanie's tax amount

Excess amount = $1202.22−645.01 = 557.21$. Tax = $81.90+(0.25\times557.21)=81.90 + 139.3025\approx221.20$.

Step7: Calculate Trevor Hughes's taxable wage

His weekly - earnings are $433.95$ and he claims 0 allowances. Taxable wage = $433.95$.

Step8: Determine the tax bracket for Trevor

Since $195.01<433.95\leq645.00$, the tax is calculated as $14.40+(0.15\times(433.95 - 195.00))$.

Step9: Calculate Trevor's tax amount

Excess amount = $433.95−195.00 = 238.95$. Tax = $14.40+(0.15\times238.95)=14.40 + 35.8425\approx50.24$.

Step10: Calculate Mara Jones's taxable wage

Her gross pay is $510.00$ and she claims 1 allowance of $63.46$. Taxable wage = $510.00−63.46 = 446.54$.

Step11: Determine the tax bracket for Mara

Since $195.01<446.54\leq645.00$, the tax is calculated as $14.40+(0.15\times(446.54 - 195.00))$.

Step12: Calculate Mara's tax amount

Excess amount = $446.54−195.00 = 251.54$. Tax = $14.40+(0.15\times251.54)=14.40 + 37.731\approx52.13$.

Answer:

1. Bill Langley's federal income tax withheld: $\$133.25$
2. Stephanie Robson's federal income tax withheld: $\$221.20$
3. Trevor Hughes's federal income tax withheld: $\$50.24$
4. Mara Jones's taxable wage: $\$446.54$, federal income tax withheld: $\$52.13$