Question
MAKE SURE TO USE THE TABLES Tables 9-1 and 9-2provided in the formula sheet. NOTE: If you use the tables in the 9th edition of
MAKE SURE TO USE THE TABLES Tables 9-1 and 9-2provided in the formula sheet.
NOTE: If you use the tables in the 9th edition of the book, your answers will be different. If you use the 9th edition, please note that somewhere on the sheet, you used the tables in the 9th edition of the book.
Michael Smith and Joan have been dating for two years. Michael earns $6,000 monthly as the General manager of Siennas Health and Fitness store. Joan is a single mother currently working as a volunteer. They plan to marry but must decide whether to get married now or wait a year or two.
Knowing Michael would get married after studying the payroll deductions Michael would get, Sienna informs Michael that married couples generally pay fewer income taxes and that if they got married now instead of waiting, he would have less income tax withheld from his paychecks. Michael's current tax filing status is single, with one exemption. If he and Joan got married, he could file as married, and with two stepchildren, would have four exemptions. Use the percentage method and Tables 9-1 and 9-2 to calculate the following:
How much federal income tax withheld from Michael's monthly paycheck?
How much federal income tax be withheld from Michael's paycheck if he and Joan got married?