Julio is single with 1 withholding allowance. He earned $1,025.00 during the most recent semimonthly pay period. He needs to decide between contributing 3% and $30 to his 401(k) plan. If he chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on the following table)?
A) $77.00
B) $86.00
C) $92.00
D) Both yield the same tax amount

Question

Julio is single with 1 withholding allowance. He earned $1,025.00 during the most recent semimonthly pay period. He needs to decide between contributing 3% and $30 to his 401(k) plan. If he chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on the following table)? 
A) $77.00 
B) $86.00 
C) $92.00 
D) Both yield the same tax amount

Quizplus · Accepted Answer

The Answer of Julio is single with 1 withholding allowance. He earned $1,025.00 during the most recent semimonthly pay period. He needs to decide between contributing 3% and $30 to his 401(k) plan. If he chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on the following table)? 
A) $77.00 
B) $86.00 
C) $92.00 
D) Both yield the same tax amount

Julio Is Single with 1 Withholding Allowance