Question

Parker is single and paying off his graduate student loan. The monthly payment is $679.34. He is hoping to receive an income tax refund that is large enough to make at least one monthly payment. His taxable income is $77,911 and his employer withheld $19,458 in federal taxes. a. How much of a refund will Tony receive? b. How many loan payments will Parker be able to make with this refund?

Answer 1

Answer: Find the tax on an income on 77,911 and subtract 19,458, then divide it by 679.34

To find this answer, you first need to find the tax on an income of 77,911, you should have a table or equation for that. Then, subtract the amount of tax withheld (19458). This will give you the refund. Divide that by the amount of your payment and you will have your answer.