Take-Home Pay
The deductions taken out of
your paycheck help support
schools, roads, national
parks, and more.
Why do you think you have to
pay taxes?
Lesson Objective
Determine the amount withheld for federal income tax.
Content Vocabulary
federal income
withholding
allowance
tax
federal income tax
withholding allowance
The number
Money
withheld
of people
by an employer
an employee
from an employee’s
supports,
which helps
paycheck
employers
to pay
federalhow
know
government
much money
taxes.
to withhold
for federal income tax.
Example 1
Carla Garza’s gross pay for this week is
$425.88. She is married and claims 2
allowances—herself and her husband.
What amount will be withheld from Garza’s
pay for FIT?
Example 1 Answer
Steps:
1. Find the income range from the federal tax
tables on pages A2-A5 in your textbook.
2. Find the column for 2 allowances.
3. The amount of income to be withheld is
$14.
Example 2
Lance Han’s gross pay for this week is
$386.88.
He is married and claims 1 allowance.
What amount will be withheld from Han’s
pay for FIT?
Example 2 Answer
Steps:
1. Find the income range from the federal tax
tables on pages A2-A5 in your textbook.
2. Find the column for 1 allowance.
3. The amount of income to be withheld is
$17.
EXAMPLE 3
Use the percentage method of withholding to find
the amount of FIT.
Deb Boon is single, claims 2 allowances, and earns
$293.23.
Example 3 Answer
Allowance Amount: Number of Allowances X $63.46
2(63.46) = $126.92
Taxable Wage = Gross Pay – Allowance Amount
$293.23 - $126.92 = $166.31
Amount Withheld for FIT (From figure 2.1 on page 130):
$0 + 10% of excess over $51 =
$0 + .10(166.31 – 51) = 0 + 11.531 = $11.53
Practice 1
Use the tax tables on pages A2-A5 in your
textbook to find the amount withheld.
Joseph Napoli, single.
Earns $524 per week.
Claims 2 allowances.
What is the FIT withheld?
Practice 1 Answer
$44
Practice 2
Use the tax tables on pages A2-A5 in your
textbook to find the amount withheld.
Amanda Hagel earns $476 a week. She is
married and claims 2 allowances. Next year
she will have a child and will claim an
additional allowance. How much less will be
withheld for federal income tax next year?
Practice 2 Answer
$312