Chapter 2 Understanding Your Paycheck
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Example 2-1A
See It
Chloe works as a medical transcriptionist. She earns $644.80 per week. Chloe
is single and claims two withholding allowances—one for her and one for her
child. Determine the amount of federal income tax that will be withheld from
Chloe’s weekly paycheck.
Strategy
Use the appropriate tax table in Figure 2-2 or 2-3.
Solution
Step 1: Determine the row that shows Chloe’s weekly wages. Read down the
columns on the left until you fi nd the row that includes Chloe’s weekly wages of
$644.80. The amount, $644.80, is between $640 and $650.
Step 2: Determine the column containing the number of Chloe’s withholding
allowances, which is two.
Source: Department of the Treasury, Internal Revenue Service
Figure 2-3. Married Persons Federal
Withholding Table