The net tax refund of Harry and Helen is $555.
Further explanation:
Marginal tax rate:
The marginal tax rate refers to the tax rate that is incurred on the additional dollar. Generally, the marginal tax rate tends to increase as the income of the taxpayer increases. It is also known as progressive taxation where the taxpayer with the higher level of income tends to pay a higher level of income tax.
Tax liability of Harry and Helen:
The income of Harry and Helen is $65,922. They are a married couple who filled return jointly. Their income falls in the income slab of $65,900-65,950. The tax liability of a married couple filing jointly is $9,169. Every week, $187 is withheld from their pay. The total withheld amount for the year will be deducted from the total tax liability to calculate their due tax liability.
[tex]\begin{aligned}\text{Due Tax Liability}&=\text{Total Tax Liability}-\text{Total Withheld Amount}\\&=\text{Total Tax Liability}\\&\:\:\:\:-(\text{Weekly withheld amount}\times{\text{Number of weeks in a year}})\\&=\$9,169-(\$187\times{52})\\&=\$555\end{aligned}[/tex]
Thus, the net tax refund of Harry and Helen is $555.
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Answer details:
Grade: Senior School
Subject: Taxation
Chapter: Income tax
Keyword: Harry and Helen are married, filing jointly, their, combined, taxable, income, every week, a total, withheld, from, their, pay, based, the table below, expect, their, taxes.
