Assume you are a single person with no dependents who made $35,000.00 from your primary job and an additional $5,500.00 from a part time position. You had a total of $7,700 dollars withheld in taxes (from both jobs combined) and will take the standard deduction. a. Will you get a refund, or will you have to pay more tax? b. What is the amount of the refund/payment?

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Business

Arias

22 April, 04:23

Assume you are a single person with no dependents who made $35,000.00 from your primary job and an additional $5,500.00 from a part time position. You had a total of $7,700 dollars withheld in taxes (from both jobs combined) and will take the standard deduction. a. Will you get a refund, or will you have to pay more tax? b. What is the amount of the refund/payment?

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Hillary Wise · Answer 1

a) we will get a refund

b) $3,043.75

Explanation:

Given:

Income from primary job = $35,000.00

Income from part time job = $5,500

Total income = $35000 + $5500 = $40,500

Now, As per IRS, tax brackets for 2017 is as:

For income, 0 - $9325 = 10% of Taxable Income

For income, $9326 - $37950 = $932.50 + 15% of the amount over $9325

and, for income $37,950 - $91,900 = $5226.25 + 25% of amount over $37950

Standard Deduction is $6350 for single tax payer

Now,

The Net Income = Total income - Standard deduction

= $40,500 - $6,350

= $34,150

Total Tax due = $932.50 + ($34150 - $9325) * 15%

= $932.50 + $3723.75

= $4,656.25

Thus, Withheld tax amount (i. e $7700) is above the tax calculated

Hence, we will get a refund

b) Amount of refund = Withheld tax - Tax due as per IRS

= $7,700 - $4,656.25

= $3,043.75