Question

Mr. Porter’s gross pay is $90,000 per year. He files taxes as head of a household, and his income tax percentage is 20%, so that is withheld from his paycheck. When he files his taxes, he owes $16,800 after deductions. Which of the following is true?

Answer 1

Answer: $1,200

Explanation: $90,000*.20=$18,000

$18,000-$16,800=$1200

Answer 2

There is no list of options to choose from, but based on the information provided, one possible conclusion is:

Mr. Porter's total income tax is $23,400, which is 26% of his gross pay ($90,000). This means that $6,600 ($23,400 - $16,800) was not withheld from his paychecks and he owed that amount when he filed his taxes.