Personal Finance 1st Edition by Jack R. Kapoor

Exercise 31

Determining a Tax Refund. If $4,026 was withheld during the year and taxes owed were $4,050, would the person owe an additional amount or receive a refund? What is the amount?

Step 1 of 2

If the taxes owed are more than taxes withheld then person is liable to pay an additional amount and need to pay the additional taxes. If taxes withheld are more than taxes owed than person receive a refund. In the given case taxes owed is $4,050 which is more than taxes withheld. Hence, person is liable to pay additional taxes.