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Taxes Worksheet


Complete the Form

Imagine you're an unmarried adult who is paid twice per month. The federal government withholds $700 in income tax from every paycheck. After the income tax is removed, your paycheck says $2,600.

Fill out this simplified tax form. Do you owe an extra federal income tax? Or does the government owe you a refund?


Income ($)

Action

0-8,349

Calculate 10% of the total Income

8,350-33,949

Calculate 15% of Income over 8,350 then add $835

33,950-82,249

Calculate 25%of the income over 33,950 then add $4675

82,250-171,549

Calculate 28% if Income over 82,250 then add $16,750

171,550-372,949

Calculate 33% of the income over 171,550 then add $41,754

372,950+

Calculate 35% of the income over 372,950 then add$108,216



_________________ 1. Total annual income, before the government withholds any taxes

_______________ 2. Standard deduction: enter $9,350 if single; $18,700 is married filing jointly

_______________ 3. Subtract line 2 from line 1 to find your taxable income

_______________ 4. Annual federal income tax withheld

_______________ 5. Calculate the amount owed on your taxable income (line 3) using Table 1

_______________ 6. If the amount in line 5 is greater than the amount in line 4, subtract 4 from 5. This is the amount you owe.

_______________ If the amount in line 4 is greater than the amount in line 5, subtract 5 from 4. This is the amount of your refund.


Do you owe more tax or will you receive a refund?

___________________________________________________

Sagot :

anthougo

Filling out the simplified tax form and determining if the government owes you a refund or you owe the government is as follows:

1. $85,800 is the Total annual income before the government withholds any taxes.

2. $9,350 is the Standard deduction since the taxpayer is unmarried.

3. $76,450 is the taxable income.

4. $18,200 is the Annual federal income tax withheld.

5. The amount owed on the taxable income (line 3) using Table 1 is $21,406.

6. The taxpayer's tax liability is $3,206 ($21,406 - $18,200).

What is tax liability?

Tax liability refers to the amount of tax that a taxpayer owes the government.

The tax liability should be settled.  However, the government may owe the taxpayer a refund if the computed annual tax is less than the withheld tax.

Data and Calculations:

Total annual income = $85,800 ($2,600 + $700 x 26)

Taxable income = $76,450 ($85,800 - $9,350)

Annual income tax withheld = $18,200 ($700 x 26)

Tax due = $21,406 ($76,450 x 28%) since annual income is above

Thus, there is no tax refund from the government because the tax liability of $3,206 exists after the withholding tax.

Learn more about taxable income at https://brainly.com/question/10137785

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