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Understanding Federal Income Tax Withholding Tables | Practical Examples and Practice Questions

Learn how to calculate federal income tax deductions from paychecks using tables with practical examples and practice questions for better understanding. Master the process and ensure accurate withholdings.

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Understanding Federal Income Tax Withholding Tables | Practical Examples and Practice Questions

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  1. SECTION 2-1 pp. 116-118 Federal Income Tax

  2. Section Objective Read: • Tables to find the amount withheld for federal income tax

  3. Key Words to Know federal income tax (FIT) (p. 116) Money withheld by an employer from an employee’s paycheck to pay federal government taxes.

  4. Jack’s Jackpot p. 116 What do you do when your bills are more than your paycheck amount?

  5. Example 1 Carla Garza’s gross pay for this week is $425.88. She is married and claims 2 allowances—herself and her husband. What amount will be withheld from Garza’s pay for FIT?

  6. Example 1 Answer Steps: 1. Find the income range from the federal tax tables on pages 788-791 in your textbook. 2. Find the column for 2 allowances. 3. The amount of income to be withheld is $15.

  7. Example 2 Lance Han’s gross pay for this week is $386.88. He is married and claims 1 allowance. What amount will be withheld from Han’s pay for FIT?

  8. Example 2 Answer Steps: 1. Find the income range from the federal tax tables on pages 788-791 in your textbook. 2. Find the column for 1 allowance. 3. The amount of income to be withheld is $17.

  9. Practice 1 Use the tax tables on pages 788-791 in your textbook to find the amount withheld. Joseph Napoli, single. Earns $524 per week. Claims 2 allowances. What is the FIT withheld?

  10. Practice 1 Answer $46

  11. Practice 2 Use the tax tables on pages 788-191 in your textbook to find the amount withheld. Amanda Hagel earns $476 a week. She is married and claims 2 allowances. Next year she will have a child and will claim an additional allowance. How much less will be withheld for federal income tax next year?

  12. Practice 2 Answer $312

  13. END OF SECTION 2-1 Federal Income Tax

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