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Assignment:
Michael Smith and Joan have been dating for two years. Michael earns $6,000 monthly as the General manager of Siennas Health and Fitness store. Joan is a single mother currently working as a volunteer. They plan to marry but must decide whether to get matched now or wait a year or two.
Knowing Michael was going to ask be getting married after studying the payroll deductions Michael would get, Sienna informs Michael that married couples generally pay fewer income taxes and that if they got married now instead of waiting, he would have less income tax withheld from his paychecks. Micheals's current tax filing status is single, with one exemption. If he and Joan got married, he could file as married, and with two stepchildren, would have four exemptions. Use the percentage method and Exhibits 9-1 and 9-2 to calculate the following:
How much is federal income tax withheld from Michaels's monthly paycheck?
How much would federal income tax be withheld from Michaels's paycheck if he and Joan got married?
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