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46. Marty earned $5,000 in interest income from the Honey Springs Bank. She failed to notify the bank that she was not subject to backup
46. Marty earned $5,000 in interest income from the Honey Springs Bank. She failed to notify the bank that she was not
subject to backup withholding.
a. If Marty's taxable income puts her in the 25 percent bracket, how much would Honey Springs Bank withhold on the
$5,000 of interest earnings?
$1,050.00
b. If Marty's taxable income puts her in the 15 percent bracket, how much would Honey Springs Bank withhold on the
$5,000 of interest earnings?
$1.190.00
can you explain this to me? i thought backup witholding was 28%?
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