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Introduction

In this article, we will explore Marilyn's biweekly pay and federal tax deductions. Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. We will use the federal tax table to calculate her deductions.

Federal Tax Table

The federal tax table is used to calculate the amount of federal tax withheld from an employee's pay. The table is based on the employee's gross income and the number of withholding allowances they claim.

Gross Income 0 Allowances 1 Allowance 2 Allowances 3 Allowances 4 Allowances 5 Allowances
$0 - $9,875 10% 10% 10% 10% 10% 10%
$9,876 - $40,125 12% 12% 12% 12% 10% 10%
$40,126 - $80,250 22% 22% 22% 12% 10% 10%
$80,251 - $164,700 24% 24% 24% 22% 12% 10%
$164,701 - $214,700 32% 24% 24% 22% 12% 10%
$214,701 - $518,400 35% 32% 24% 22% 12% 10%
$518,401 - $622,050 37% 35% 32% 24% 22% 12%
$622,051 - $1,084,600 39.6% 37% 35% 32% 24% 22%
$1,084,601 - $2,166,600 37% 39.6% 37% 35% 32% 24%
$2,166,601 and above 35% 37% 39.6% 37% 35% 32%

Calculating Marilyn's Federal Tax Deductions

To calculate Marilyn's federal tax deductions, we need to determine which tax bracket she falls into. Based on her biweekly gross pay of $810, we can see that she falls into the 12% tax bracket.

Gross Income 0 Allowances 1 Allowance 2 Allowances 3 Allowances 4 Allowances 5 Allowances
$0 - $9,875 10% 10% 10% 10% 10% 10%
$9,876 - $40,125 12% 12% 12% 12% 10% 10%

Since Marilyn claims 3 federal withholding allowances, we can see that she falls into the 12% tax bracket.

Calculating Marilyn's Federal Tax Deductions

To calculate Marilyn's federal tax deductions, we need to multiply her gross income by the tax rate.

$810 x 0.12 = $97.20

However, since Marilyn claims 3 federal withholding allowances, we need to subtract the standard deduction for 3 allowances.

$97.20 - $3 x $4,300 = $97.20 - $12,900 = $-12,802.80

Since the result is negative, we can see that Marilyn's federal tax deductions are actually a refund.

Conclusion

In conclusion, Marilyn's biweekly pay and federal tax deductions are as follows:

  • Gross income: $810
  • Federal tax deductions: $-12,802.80 (refund)

It's worth noting that this is a simplified example and actual tax calculations may be more complex.

References

  • IRS Publication 15 (Circular E), Employer's Tax Guide
  • IRS Publication 17, Your Federal Income Tax

Additional Resources

Disclaimer

Introduction

In our previous article, we explored Marilyn's biweekly pay and federal tax deductions. We calculated her federal tax deductions using the federal tax table and determined that she falls into the 12% tax bracket. However, we also found that her federal tax deductions are actually a refund. In this article, we will answer some frequently asked questions about Marilyn's biweekly pay and federal tax deductions.

Q: What is the federal tax table?

A: The federal tax table is a table used by the Internal Revenue Service (IRS) to calculate the amount of federal tax withheld from an employee's pay. The table is based on the employee's gross income and the number of withholding allowances they claim.

Q: How do I determine which tax bracket I fall into?

A: To determine which tax bracket you fall into, you need to look at the federal tax table and find the range of gross income that corresponds to your tax rate. For example, if you have a biweekly gross pay of $810 and claim 3 federal withholding allowances, you would fall into the 12% tax bracket.

Q: What is the standard deduction for 3 federal withholding allowances?

A: The standard deduction for 3 federal withholding allowances is $12,900.

Q: Why did Marilyn's federal tax deductions result in a refund?

A: Marilyn's federal tax deductions resulted in a refund because her gross income was below the threshold for the 12% tax bracket. As a result, the amount of federal tax withheld from her pay was less than the amount of tax she owed, resulting in a refund.

Q: Can I claim more than 3 federal withholding allowances?

A: Yes, you can claim more than 3 federal withholding allowances. However, you will need to provide documentation to support your claim, such as a copy of your tax return or a letter from your employer.

Q: How do I calculate my federal tax deductions?

A: To calculate your federal tax deductions, you need to multiply your gross income by the tax rate. You can use the federal tax table to find the tax rate that corresponds to your gross income and number of withholding allowances.

Q: Can I use the federal tax table to calculate my state tax deductions?

A: No, the federal tax table is only used to calculate federal tax deductions. You will need to use a separate table or formula to calculate your state tax deductions.

Q: What is the difference between a tax bracket and a tax rate?

A: A tax bracket is a range of gross income that corresponds to a specific tax rate. For example, the 12% tax bracket includes gross incomes ranging from $9,876 to $40,125. A tax rate is the percentage of tax owed on a given amount of gross income.

Q: Can I use the federal tax table to calculate my tax deductions for a single pay period?

A: Yes, you can use the federal tax table to calculate your tax deductions for a single pay period. However, you will need to multiply your gross income by the tax rate and then subtract the standard deduction for your number of withholding allowances.

Conclusion

In conclusion, Marilyn's biweekly pay and federal tax deductions are a complex topic that requires careful calculation and attention to detail. By using the federal tax table and understanding the tax brackets and rates, you can accurately calculate your federal tax deductions and ensure that you are in compliance with tax laws and regulations.

References

Additional Resources

Disclaimer

This article is for informational purposes only and should not be considered as tax advice. It's always best to consult a tax professional for accurate and personalized tax advice.