use the following federal tax table for bi - weekly earnings of a single person to help answer the question…
use the following federal tax table for bi - weekly earnings of a single person to help answer the question below. if the wages are - and the number of withholding allowances claimed is - at least but less than the amount of income tax withheld is - mario has gross biweekly earnings of $784.21. by claiming 1 more withholding allowance, mario would have $13 more in his take - home pay. how many withholding allowances does mario currently claim?
Answer
Explanation:
Step1: Locate Mario's earnings range
Mario has bi - weekly earnings of $784.21. Looking at the table, his earnings fall in the "At least 780, but less than 800" row.
Step2: Find the tax amount with one more allowance
We are told that by claiming 1 more withholding allowance, Mario would have $13 more in his take - home pay. This means the difference in tax withholding when an additional allowance is claimed is $13. Looking at the "At least 780, but less than 800" row, we find the number of allowances that corresponds to a $13 change in tax withholding. In the "At least 780, but less than 800" row, when we move from one number of allowances to the next (increasing by 1 allowance), we can see that the change in tax withholding amount is $13 when moving from 4 allowances to 5 allowances. So currently, Mario claims 4 withholding allowances.
Answer:
4