McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 53

{Research} Anna is single with one four-year-old child and will file Head of Household.She earns a monthly salary in 2011 of $5,000.
a.If she claims two withholding allowances, how much will her employer withhold from her monthly paycheck? Refer to IRS Publication 15 and use the wage bracket method.b.If she claims four withholding allowances, how much will her employer withhold from her monthly paycheck? Refer to IRS Publication 15 and use the wage bracket method.c.Assuming that she has no other income, claims the standard deduction, and claims one personal and one dependency deduction, what is Anna's tax liability for the year? How many withholding allowances should she claim to equalize (approximately) her withholding and her tax liability?