Solved Yarin’s gross pay for the year was $3,500

Question:

Yarin’s gross pay for the year was $3,500. The federal income tax withholding from his pay was 9% of his gross pay. Yarin determined the federal income tax he owes is $115. How much of a refund can Yarin expect?

A. $200

B. $315

C. $3,035

D. $3,185

Answer:

Federal tax withholding = $3,500 * 9%

= $315

Refund = Federal tax withholding – Federal tax owed

= $(315 – 115)

= $200

Answer: A. $200