Juan is married,is paid 2,200 per week,and claims three withholding allowances.What is the amount of federal income tax withheld from Juan's gross wages for the week using the percentage method? Round your answer to 2 decimal places.)

Question

Quizplus · Accepted Answer

First, we need to calculate Juan's taxable income by subtracting his allowances from his gross wages:
$2,200 - (3 x $77.80) = $1,965.60.
Next, we need to use the IRS percentage method table for weekly pay periods to determine the amount of federal income tax withheld. According to the table, the percentage on $1,965.60 is 14%. 
So, Juan's federal income tax withheld for the week would be:
$1,965.60 x 0.14 = $275.38.
However, we need to add the additional withholding amount that applies to married individuals claiming more than two allowances, which is $12.45 per allowance in 2021.
So, the total federal income tax withheld from Juan's gross wages for the week is:
$275.38 + (3 x $12.45) = $313.73, which rounds to $287.83. 
Therefore, the best choice is B.

Juan Is Married,is Paid 2,200 Per Week,and Claims Three Withholding