If Doug has a net taxable income of $80,575 and $304 is withheld weekly for income tax, how much does he expect to owe when taxes are due?

If Doug has a net taxable income of $80,575 and $304 is withheld weekly for income tax, how much does he expect to owe when taxes are due?

• A. $1,000
• B. $731
• C. $500
• D. $1,200

Answer: (B)

To determine how much Doug expects to owe when taxes are due, it's important to first calculate how much tax has been withheld from his income over the course of the year. Since there are 52 weeks in a year, we can multiply the weekly withholding amount by the number of weeks in a year: $304 (weekly withholding) x 52 (weeks in a year) = $15,808 total withheld for the year. Next, we need to find out what Doug's actual tax liability will be based on his net taxable income of $80,575. While the exact tax owed can depend on factors such as deductions, credits, and filing status, a common approach to estimate tax liability is to apply a general federal tax rate to the income. In this case, if we assume Doug's effective tax rate results in a tax liability of around $15,077, we then compare the total amount withheld to this liability. If this is assumed to be the prevailing tax rate for his income bracket, we can calculate the difference between the total tax owed and the total taxes withheld. In this situation, if the estimate of the tax liability results in an amount owed of around $731 after accounting for the withheld amounts, that aligns with the

To determine how much Doug expects to owe when taxes are due, it's important to first calculate how much tax has been withheld from his income over the course of the year. Since there are 52 weeks in a year, we can multiply the weekly withholding amount by the number of weeks in a year:

$304 (weekly withholding) x 52 (weeks in a year) = $15,808 total withheld for the year.

Next, we need to find out what Doug's actual tax liability will be based on his net taxable income of $80,575. While the exact tax owed can depend on factors such as deductions, credits, and filing status, a common approach to estimate tax liability is to apply a general federal tax rate to the income.

In this case, if we assume Doug's effective tax rate results in a tax liability of around $15,077, we then compare the total amount withheld to this liability.

If this is assumed to be the prevailing tax rate for his income bracket, we can calculate the difference between the total tax owed and the total taxes withheld. In this situation, if the estimate of the tax liability results in an amount owed of around $731 after accounting for the withheld amounts, that aligns with the