Question

Jacob Drewrey is paid semimonthly an adjusted gross income of ​$2 comma 427. He is single and claims two qualifying children under age 17. Use the Wage Bracket Method tax tables to find the federal withholding tax to be deducted from his semimonthly salary. Assume that he is using the Single filing status.

Answer 1

To determine the federal withholding tax for Jacob Drewrey under the Wage Bracket Method, we first need to identify several key pieces of information:

1. Semimonthly Income: $2,427
2. Filing Status: Single
3. Number of Children: 2 qualifying children (for the Child Tax Credit)

Before proceeding with the computation, we should check the standard deduction and the Child Tax Credit, which can affect the overall tax liability, although they don't directly impact the withholding calculation for his current paycheck.

Steps:

1. Locate the Wage Bracket Tax Table for Single filers - For the year 2023, the IRS provides wage bracket tables that indicate the federal withholding tax based on the income level.

2. Determine the appropriate wage bracket - Based on the semimonthly income of $2,427, we'll need to find this amount in the IRS tax table (for the appropriate year) for a single filer.

3. Adjust for the number of allowances - Jacob has two children which impact his withholding exemptions. For 2023, each qualifying child for the Child Tax Credit can provide a benefit, but the exact computation of withholding will follow the tables indicated for the number of allowances.

4. Calculate the withholding tax - Following the tables, we can compute the federal withholding tax that applies to Jacob's semimonthly income after considering the allowances.

Tax withholdings are generally determined using IRS tables, and since I cannot access real-time databases or IRS tables directly, I will describe how you should proceed:

1. Refer to the IRS Wage Bracket Method tables for the year 2023 - You’ll find the specific table for Semimonthly pay periods for a single taxpayer.

2. Find the row that corresponds to his income level - For an income of $2,427, you can locate the tax owed based on the number of allowances Jacob claims. This typically subtracts a certain amount based on the allowance from the income before finding the tax owed.

3. Adjust for Child Tax Credit: While the Child Tax Credit may not directly reduce withholding in the Wage Bracket tables, it can affect total tax liability when filing, so keep that in mind in full-year tax planning.

If you have access to the IRS Publication 15-T or the specific year’s Wage Bracket table, you would have the precise figure for the withholding tax.

If you have any specific figures from IRS publications or a certain range in mind, please provide them, and I could assist further using those specific ranges.