Mr. Porter’s gross pay is $90,000 per year. He files taxes as head of a household, and his income tax percentage is 20%, so that is withheld from his paycheck. When he files his taxes, he owes $16,800 after deductions. Which of the following is true?
Answer
A
Mr. Porter will owe $1,200 in federal taxes.
B
Mr. Porter will owe $351 in federal taxes.
C
Mr. Porter will get a refund of $1,200.
D
Mr. Porter will get a refund of $351.
Explanation
Mr. Porter had 20% of his $90,000 gross pay withheld: 0.20 × $90,000 = $18,000. His final tax owed after deductions is $16,800, which is $1,200 less than the amount withheld. He will get a refund of $1,200, so choice C is correct.
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