Answer:
a) we will get a refund
b) $3,043.75
Explanation:
Given:
Income from primary job = $35,000.00
Income from part time job = $5,500
Total income = $35000 + $5500 = $40,500
Now, As per IRS, tax brackets for 2017 is as :
For income, 0 - $9325 = 10% of Taxable Income
For income, $9326 - $37950 = $932.50 + 15% of the amount over $9325
and, for income $37,950 - $91,900 = $5226.25 + 25% of amount over $37950
Standard Deduction is $6350 for single tax payer
Now,
The Net Income = Total income - Standard deduction
= $40,500 - $6,350
= $34,150
Total Tax due = $932.50 + ( $34150 - $9325 ) × 15%
= $932.50 + $3723.75
= $4,656.25
Thus, Withheld tax amount ( i.e $7700 ) is above the tax calculated
Hence, we will get a refund
b) Amount of refund = Withheld tax - Tax due as per IRS
= $7,700 - $4,656.25
= $3,043.75