Solution:
Taxable Income = $ 35,000
As, Taxable income = Gross income - Deductions(Debts,loans,finances)
1. Find his earned income level.
2. Enter the base amount. = $4,386
3. Find the amount over $ 31,850= $3,150
4. Multiply line 3 by 25 % = $787.50
5. Add Lines 2 and 4 = $5,173.50
6. Monthly Withholding = $ 431.13
So,Tax Paid by Mr.Profit= Taxable income-Withholding Allowances = $5,173.50 - $ 431.13= $ 4,742.37
