Aliza had a tax liability of $6,218 last year. She was entitled to tax credits of $758 and withholding amounted to $540 per month. Aliza owed other taxes of $626. Calculate the amount of the refund or the amount of additional taxes due (as the case may be).

Question

Quizplus · Accepted Answer

Aliza's total withholding for the year is $540 * 12 = $6,480. Her total tax liability including other taxes is $6,218 + $626 = $6,844. After applying her tax credits of $758, her total payments towards her tax liability are $6,480 + $758 = $7,238. Therefore, she is entitled to a refund of $7,238 - $6,844 = $394.

Aliza Had a Tax Liability of $6,218 Last Year