A person with a total tax liability of $7,250 and withholding of federal taxes of $5,000 would:
owe $2,250
To determine what a person would do with a total tax liability of $7,250 and federal tax withholding of $5,000, we can follow these steps:
Step 1: Calculate the tax due: Subtract the federal tax withholding from the total tax liability.
$7,250 - $5,000 = $2,250.
Step 2: If the tax due is positive (greater than zero), it means the person has an additional tax liability to pay. In this case, the person would need to pay the remaining tax amount of $2,250 to the IRS.
So, a person with a total tax liability of $7,250 and federal tax withholding of $5,000 would need to pay an additional $2,250 to fulfill their tax obligation.
To determine what a person would owe in federal taxes given a total tax liability and withholding amount, we need to understand how withholding works.
Withholding is the amount of federal income tax that is automatically deducted from your paycheck by your employer. It is based on the information you provide on your Form W-4, such as your filing status, number of allowances, and any additional withholdings you request.
When you file your tax return, you calculate your total tax liability, which is the amount of tax you owe based on your income and other applicable factors.
In this scenario, the person has a total tax liability of $7,250 and withholding of $5,000.
To determine what the person would owe, we need to compare the withholding with the tax liability:
Tax Liability - Withholding = Amount Owed or Refund
$7,250 - $5,000 = $2,250
So, based on the given numbers, the person would still owe $2,250 in federal taxes.