Oscar has elected to have 23% of his federal income tax withheld as state income tax. If $154.00 was withheld as federal income tax on his last paycheck, how much will be withheld from his paycheck for income tax in all?
a.
$35.42
b.
$118.58
c.
$177.00
d.
$189.42
To find the total amount withheld for income tax, we need to determine what percentage of Oscar's total income tax is represented by the $154.00 that was withheld for federal income tax.
Let's call the total amount withheld for income tax X.
We know that X is 23% of Oscar's total federal income tax. So we can set up the equation:
23% of X = $154.00
To solve for X, we can multiply both sides of the equation by 100 to get rid of the percentage:
0.23X = $154.00
Then, we divide both sides of the equation by 0.23 to isolate X:
X = $154.00 ÷ 0.23 ≈ $670.43
Therefore, the total amount that will be withheld from Oscar's paycheck for income tax is $670.43.
Answer: None of the given options are correct.
To find out how much will be withheld from Oscar's paycheck for income tax in all, we need to calculate the amount withheld for state income tax.
Given:
Federal income tax withheld = $154.00
State income tax rate = 23%
Let's calculate the state income tax amount:
State income tax = Federal income tax * State income tax rate
State income tax = $154.00 * 0.23
State income tax = $35.42
Now, we can calculate the total amount withheld for income tax:
Total income tax withheld = Federal income tax + State income tax
Total income tax withheld = $154.00 + $35.42
Total income tax withheld = $189.42
Therefore, the correct answer is option d. $189.42.