Question

2007 Federal Income Tax Table Single: Over But not over The tax is $0 $7,825 10% of the amount over $0 $7,825 $31,850 $788 + 15% of the amount over $7,825 $31,850 $77,100 $4,386 + 25% of the amount over $31,850 $77,100 $160,850 $15,699 + 28% of the amount over $77,100 $160,850 $349,700 $39,149 + 33% of the amount over $160,850 $349,700 And Over $101,469 + 35% of the amount over $349,700 Mr. Profit had a taxable income of $35,000. He figured his tax from the table above. 1. Find his earned income level. 2. Enter the base amount. = $ 3. Find the amount over $ = $ 4. Multiply line 3 by % = $ 5. Add Lines 2 and 4 = $ 6. Compute his monthly withholding would be = $

Answer 1

Explanation:

1. Earned income is said to be $35,000.

2. Base tax amount at that level is $4386.

3. The amount over $31850 is $35000-31850 = $3150

4. Line 3 is multiplied by 25%: $3150×0.25 = $787.50

5. The sum of lines 2 and 4 is $4386 +787.50 = $5173.50

6. This amount divided by 12 is ... $5173.50/12 ≈ $431.13