Question 3 of 5.In which situations may a taxpayer claim exemption from withholding on their Form W-4, Employee's Withholding Certificate? Did not have a federal income tax liability for the prior year and do not expect to have any liability for the current year. Would like to have taxes withheld from a second job. Experienced a life-changing situation that will result in losing eligibility for one or more tax credits. Have considerable amounts of self-employment or investment income
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Step 1: Understand the question The question asks about the situations in which a taxpayer can claim exemption from withholding on their Form W-4. Show more…
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Name: ________ Taxes - State Income Tax 1 Just about every state requires an employer to withhold state tax from their employee's taxable earnings. Taxable earnings are an employee's gross earnings minus their personal exemption. Some states withhold a set percentage of taxable earnings while others withhold a graduated amount based on different levels of income. Formulas for Calculating State Tax Annual Gross Pay - Personal Exemption = Taxable Earnings Taxable Earnings x Tax Rate = Tax Withheld Annual Tax Withheld % Number of Pay Periods = Tax Withheld per Pay Period Directions: Read each question carefully and write your answer on the line provided. Use the following personal exemptions to answer the questions below. Single $1,750. Married $3,500, Each Dependent $900 1. Joel Bigby earns an annual salary of $54,625.00 as a field tech supervisor. He is married and has two children. His state withholding tax rate is 3.7 percent of taxable earnings. What is the total of Joel's personal exemption? ________ What is his annual state tax withholding rounded to the nearest dollar? ________ 2. Carla Gore earns an annual salary of $36,520.00 as an x-ray technician. She is single and has a little girl. Her state withholding tax rate is 4.2 percent of taxable earnings. What is the amount of Carla's taxable earnings? ________ What is her annual state tax withholding rounded to the nearest dollar? ________ 3. Sue Joines earns an annual salary of $42,780.00 as a bank manager. She is married and has four children. Her state withholding tax rate is 4.7 percent of taxable earnings. What is the amount of Sue's personal exemption? ________ What is her annual state tax withholding rounded to the nearest dollar? ________ 4. Velma Reeves earns an annual salary of $122,680.00 as a district court judge. She is married and has three children. Her state withholding tax rate is 3.9 percent of taxable earnings. What is the amount of Velma's personal exemption? ________ What is her annual state tax withholding rounded to the nearest dollar? ________ 5. Kelly Richards earns an annual salary of $105,000.00 as a doctor. She is single, has two children, and is paid weekly. Use the personal exemptions listed above and the graduated tax rate chart below to answer the following questions. Annual Gross Pay | Tax Rate First $1,000 | 2.0% Next $2,500 | 2.5% Next $2,500 | 3.5% Next $94,000 | 4.5% Over $100,000 | 6.0% What is the amount of Kelly's annual personal exemption? ________ What is her weekly gross salary? ________ What is her weekly state tax withholding? ________
Akash M.
PSb 3-7 Calculate Federal Income Tax Withholding Using the Percentage Method (2020/2021 Form W-4) For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a 2020 Form W-4. Refer to Publication 15-T. 1:Julia Jacobsen files as single on her tax return and earned weekly gross pay of $500. For each pay period she makes a 401(k) contribution of 2% of gross pay. Julia checked box 2c on Form W-4, entered $40 on line 4c of the form, and did not enter any information in step 3 of the form. Federal income tax withholding = $ 2:Alejandro Wright files as single on his tax return and earned weekly gross pay of $1300. He does not make any retirement plan contributions. Alejandro entered $500 in step 3 of the form and did not enter any information in steps 2 & 4 of the form. Federal income tax withholding = $ Tentative Federal Income Tax Withholding = $ 3:Beatrice Nen files as married filing jointly on her tax return and earned weekly gross pay of $1130. For each pay period she makes a flexible spending account contribution of 5% of gross pay. Beatrice did not enter any information in steps 2-4 of the form. Federal income tax withholding = $
Form 1040 Schedules. determine which of the schedules 1 through 3 the taxpayers will file with form 1040 for each case. a. Abby and Bert are married, file a joint tax return, and have two qualifying children (ages 4 and 8). Their only income is $70,000 of salaries and wages, from which $4500 of federal income tax is withheld. They claim the standard deduction and child care credit. b. Celeste is a full time college student and qualifying child of her parents. Her only income is $7500 of salaries and wages from a part-time job. She claims the standard deduction. c. Donna and Ernie (ages 64 & 67) are married, file a join tax return, and have no dependents. Donna receives a $125,000 salary for the year, and Ernie receives $45,000 of taxable pension benefits. The federal income taxes of $30,000 are withheld. Donna and Ernie have $10,0000 of qualifying dividends and a $4000 long term capital-gain from their investments. They claim itemized deductions rather than the standard deduction. d. Fiona is age 12 and a dependent of her parents. Her only income is $25,000 of taxable interest from bonds she inherited from a grandparent. She made $3,100 of estimated tax payments.
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