Review and Assessment

• Economie

List the factors that determine the amount withheld for federal income tax.

Objectives

1. Identify the FIT 

2. Determine the SIT  

3. Calculate graduated State income tax

Example 1

Will Stevenson, a chemist who is married and claims 2 allowances, earns $600.50 a week.

How much does he have withheld from his weekly paycheck for federal income tax?

Step 1: Find the income range from the Married Persons table.

Step 2: Find the column for 2 allowances.

Step 3: Amount to be withheld is $33.00

Maggie Brown, a customer service representative at Kelly’s Floral Designs, is single,
earns $455 weekly, and claims 2 allowances. What is the amount of federal income tax
withheld?

Angie Simon is a single Palmetto County deputy sheriff. She has $103.92 in
federal income tax withheld from her weekly salary. Her weekly salary exceeds $645.00.
She claims 2 withholding allowances. The county computes her federal income tax using
the percentage method. Use Figure 2.1 on page 130 to determine Angie’s weekly salary.

Chris Butcher earns $21,423 per year as a forestry technician.

His exemptions include himself, his wife, and their son. The

state tax rate in his state is 4.5% of taxable income.

Al Masters earns $32,500 as a medical lab technician. He is single with 1
dependent. His annual state income tax is $1,475. What is his state income tax rate?

Maurice Jordan’s annual salary as
a motorcycle mechanic is $18,750
paid in 26 pay periods. He is
married

Discuss the elements of the lesson.