Sergio is single, is paid $2,400 per week, and claims one withholding allowance. What is the amount of federal income tax withheld from Sergio's gross wages for the week using the percentage method? (Round your answer two decimal places)

Question

Quizplus · Accepted Answer

To calculate the federal income tax withheld using the percentage method, we need to use the IRS Tax Tables for Percentage Method of Withholding. Based on Sergio's gross wages of $2,400 and his withholding allowance of 1, the taxable amount is $2,350 (which can be found in Table 1 of the IRS Publication 15-T). The tax rate for this amount is 22%, and the fixed amount is $257.65 (which can be found in Table 2 of the IRS Publication 15-T). Therefore, the federal income tax withheld is:

$2,350 x 22% - $257.65 = $504.90

So, the correct answer is C.

Sergio Is Single, Is Paid $2,400 Per Week, and Claims