Cross receives a monthly paycheck from a bakery plant of $3,500.30. She is married and is entitled to 3 withholding allowances. How much is her taxable income? Use the percentage method tables in Exhibits 9-1 and 9-2 from your text.

Question

Quizplus · Accepted Answer

To calculate Cross's taxable income, we subtract the value of the withholding allowances from her monthly paycheck. According to the IRS, the value of one withholding allowance for 2023 is $345.80 per month. Therefore, for three allowances: 3 * $345.80 = $1,037.40. Subtracting this from her monthly paycheck: $3,500.30 - $1,037.40 = $2,462.90.

Cross Receives a Monthly Paycheck from a Bakery Plant of $3,500.30