Federal Income Tax Withholding Karen Dunn’s weekly gross earnings for the present week were $2,250. Dunn has two exemptions. Using the wage bracket withholding table in Exhibit 2 with a $75 standard withholding allowance for each exemption, what is Dunn’s federal income tax withholding?

Question

Federal Income Tax Withholding

Karen Dunn’s weekly gross earnings for the present week were $2,250. Dunn has two exemptions. Using the wage bracket withholding table in Exhibit 2 with a $75 standard withholding allowance for each exemption, what is Dunn’s federal income tax withholding?

Accepted Answer

Total wage payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,250
One allowance (provided by IRS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    $75
Multiplied by allowances claimed on Form W-4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    [latex]\underline{× 2} [/latex] [latex]\underline{ 150} [/latex]
Amount subject to withholding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    [latex]\underline{\$ 2,100} [/latex]
Initial withholding from wage bracket in Exhibit 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    $356.90
Plus additional withholding: 28% of excess over $1,796 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    [latex]\underline{85.12^{*} } [/latex]
Federal income tax withholding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [latex]\underline{\$ 442.02} [/latex]
*28% × ($2,100 – $1,796)

Question 11.2: Federal Income Tax Withholding Karen Dunn’s weekly gross ear...

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