John and Lillian Miles intend to file jointly in 2021. The Miles' address is 456 Peachtree Court, Atlanta, GA 30310. John expects to earn wages of $39,000 in 2021 and Lillian's wages are expected to be very similar at $39,480. They have two dependent children aged 13 and 17. Lillian also has a small business that she expects to generate income of $6,500 in 2021. She would prefer to increase her withholding rather than make estimated tax payments. They expect to make a $4,000 deductible IRA contribution in 2021 and use the standard deduction. Assuming she is the higher income earner and is paid monthly, prepare a Form W-4 for Lillian Miles including worksheets for steps 2(b) and 4(b), if needed.

Assuming that Lillian is paid monthly ($3,290 per month) and using the Form W-4 prepared in part a, compute Lillian's withholding using the percentage method and the wage bracket method.

When required, do not round your intermediate computations. Round your final answer to two decimal places.

Click here to access the withholding tables.

IRS Publication 15-T, Federal Income Tax Withholding Methods.

Pay period	2021 Allowance Amount
Weekly	$ 83
Biweekly	165
Semimonthly	179
Monthly	358
Quarterly	1,075
Semiannually	2,150
Annually	4,300

The percentage method $__________

The wage bracket method $__________