Tim Worker estimates his taxable income will be $7,000. He is paid twice a month or 24 times a year. Because Tim has only one source of income, he uses the Tax Tables to estimate how much will be deducted from his pay for withholding.
Answer: He pays $29.17 each time This means that he pays $58.34 per month since he pays twice a month
Explanation: The Individual's taxpayers table is shown in the attached image. We know that the taxable income is $7000. Based on the table attached, the taxes would be 10% of this income
This means that: taxes = 0.1 * 7000 = $700
Now, we know that he pays twice a month. This means that he pays 24 times a year. Therefore: amount paid each time = [tex] \frac{700}{24} = [/tex] $29.166 which is approximately $29.17
Based on the above: He pays $29.17 each time This means that he pays $58.34 per month since he pays twice a month
