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You earn \$1,166 gross taxable income every week, and have claimed no exemptions. Assuming that you have no other sources of income, what is the amount of income tax withheld each week?




\multicolumn{3}{|l|}{Weekly Gross Income}		\multicolumn{8}{|c|}{And the number of withholding allowances claimed is}

At least		\multicolumn{2}{|c|}{But less than}01234567

1,150		1,160337319302284267249231214198

1,160		1,170340323305288270253235218201

1.170		1.180344327309292274257239222204

1,180		1.190348331313296278261243226208

1.190		1.200352335317300282264247229212

1,200		1.210356338321303286268251233216





A\$323
B\$337
C\$340
D\$344

Verified Answer :

  • Identify the weekly income range of \(\$1,160\) to \(\$1,170\) which includes \(\$1,166\).
  • Locate the column for 0 withholding allowances in the provided tax table.
  • Find the value at the intersection of the income range row and the 0 allowance column.
  • The amount of income tax withheld is \(\boxed{\$340}\).

Explanation

  1. Determining the Income Tax Withholding Amount

To determine the income tax withheld from a weekly gross income of \(\$1,166\) with zero withholding allowances, we examine the provided tax withholding table. First, we identify the row corresponding to the weekly income range that includes \(\$1,166\). The range \(\$1,160\) to \(\$1,170\) covers our target income of \(\$1,166\). Next, we identify the column representing zero withholding allowances, which is the first column after the "But less than" column. By finding the intersection of the identified row (\(\$1,160\) to \(\$1,170\)) and the column for zero withholding allowances, we observe the value in the table is \(\$340\).

Examples

Understanding tax tables is a fundamental skill in personal finance. When you receive your first paycheck, checking your pay stub against tax withholding charts helps you verify that your employer is deducting the correct amount for federal and state taxes. This ensures that you neither overpay nor underpay your taxes throughout the year, allowing for better budget management and preventing unpleasant surprises during tax season. Mastering how to read these tables is a simple yet effective step toward financial literacy.

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