Hamad is an employee of Mountain Company. He properly completed his Form 1040EZ tax return and was required to pay the IRS $1,244 at the time of filing. He had income tax withholding during the year of $4,782. His tax liability for the year was:
A. $1,244.
B. $3,538.
C. $4,782.
D. $6,026.
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In order to calculate Hamad's tax liability, we need to subtract his income tax withholding from the amount he was required to pay the IRS at the time of filing.
Tax Liability = Amount required to pay - Income tax withholding
Tax Liability = $1,244 - $4,782
Tax Liability = -$3,538
Since the tax liability is negative, the correct answer is:
B. $3,538
To determine Hamad's tax liability for the year, we need to calculate his total tax liability by considering his income tax withholding and the amount he was required to pay at the time of filing.
Hamad's income tax withholding during the year was $4,782. This means that his employer withheld this amount from his paychecks and sent it directly to the IRS on his behalf.
At the time of filing his tax return, Hamad was required to pay an additional $1,244 to the IRS. This means that his total tax liability, including the amount already withheld, is $4,782 + $1,244 = $6,026.
Therefore, the correct answer is:
D. $6,026.