the percentage method of withholding for federal income tax states that a single whose weekly wages, after subtracting withholding allowances, are over $529, but not over $1317, shall have $74.35 plus 25% of the excess over $592 withheld. Over what range does the amount withheld vary if the weekly wages vary from $600 to $1100 inclusive?
the amount withheld varies from $ to $ , inclusive
2006-12-04 08:19:49 · 5 answers · asked by Jeff W 1 in Business & Finance ➔ Taxes ➔ United States
$92.10 to $217.10 inclusive.
($600 - 529) x .25 = $17.75 + 74.35 = $92.10
($1100 -529) x .25 = $142.75 + 74.35 = $217.10
2006-12-04 08:36:04 · answer #1 · answered by Gem 7 · 0⤊ 0⤋
I see addition, subtraction, and multiplication by .25. Where is the 'though math'?
You show the lower end of the range at $529 and $592. For the 2004 tax year, $592 is correct.
For $600 income:
$600 - $592 = $8
$8 x 25% = $2
$2 + $74.35= $76.35
For $1100 income:
$1100 - $592 = $508
$508 x 25% = $127
$127 + $74.35 = $201.35
You did not give a number of withholding allowances, so I used zero. See page 35 of IRS Publication 15. 2004 version linked below.
2006-12-04 19:28:39 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
The amount withheld varies just as much as the wages vary. You need to apply the wage in question to the formula. That is easy to do. For 600.00 the tax is 74.35 on 592.00 plus 25% of 8.00 which is 2.00 a total of 76.35.
2006-12-04 16:38:19 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋
The answer is the following
For 600$
Amount witheld = 74.35+ (600-592)* 0.25
= 76.35
For 1100
Amount witheld = 74.35+ (1100-592)* 0.25
= 201.35
The range is then $ 76.35 to $201.35
2006-12-04 16:32:26 · answer #4 · answered by stinger 2 · 0⤊ 0⤋
That is so easy you should get into my country.And when you see math it is so tough that your eyes will fall out
2006-12-04 16:23:07 · answer #5 · answered by Anonymous · 0⤊ 1⤋