Nevan's gross pay was $45,150 last year. The federal income tax withholding from his pay was 16% of his gross pay. Nevan determined the federal income tax he owes is $6,150. Which of the following is true?

a. Nevan owes an additional $984 in federal tax.

b. Nevan owes an additional $1,074 in federal tax.

c. Nevan will receive a refund of $984.

d. Nevan will receive a refund of $1,074.

Question

Mathematics

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14 December, 22:12

Nevan's gross pay was $45,150 last year. The federal income tax withholding from his pay was 16% of his gross pay. Nevan determined the federal income tax he owes is $6,150. Which of the following is true?

a. Nevan owes an additional $984 in federal tax.

b. Nevan owes an additional $1,074 in federal tax.

c. Nevan will receive a refund of $984.

d. Nevan will receive a refund of $1,074.

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Answers (1)

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Jazlene Blankenship · Answer 1

You can calculate the federal income taxes that Nevan owes by multiplying his gross pay, $45,150, times the tax rate, 16%, and then subtract the withholdings:1) $45,150 * 16% = $7224; 2) $7224 - $6150 = $1074. Then, Nevan owes an additional $1074 in feferal tax, which is the option b.