Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much federal withholding tax will Angie's employer withhold for 2017?

Question

Quizplus · Accepted Answer

To determine Angie's federal withholding tax, we need to first calculate her taxable income based on her annual salary and withholding allowances. 
- First, we subtract the standard deduction for a single filer in 2017, which was $6,350. This gives us a taxable income of $122,850. 
- Next, we use the tax brackets for a single filer in 2017 to determine the amount of tax owed. For the first $9,325 of taxable income, the tax rate is 10%. For the next $28,625 ($9,326-$37,950), the tax rate is 15%. For the next $53,950 ($37,951-$91,900), the tax rate is 25%. Finally, for the remaining $30,900 of taxable income, the tax rate is 28%. 
- Using these rates, we can calculate the total tax owed for the year. Alternatively, we can use tax tables provided by the IRS. Using the monthly payroll period tables provided for 2017, we find that the federal withholding tax for Angie's income, filing status, and withholding allowances is $2,187.12 per month, or $26,245.44 for the full year. Therefore, the correct answer is C.

Angie Earned $129,200 During 2017