Use the following federal tax table for biweekly earnings of a single person to help answer the question below.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|}
\hline
If the wages are - & \multicolumn{10}{|c|}{ And the number of withholding allowances claimed is - } \\
\hline
At least & \begin{tabular}{c}
But less \\
than
\end{tabular} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & [tex]$10+$[/tex] \\
\hline
720 & 740 & 80 & 62 & 44 & 26 & 14 & 1 & 0 & 0 & 0 & 0 & 0 \\
\hline
740 & 760 & 83 & 65 & 47 & 28 & 16 & 3 & 0 & 0 & 0 & 0 & 0 \\
\hline
760 & 780 & 86 & 68 & 50 & 31 & 18 & 5 & 0 & 0 & 0 & 0 & 0 \\
\hline
780 & 800 & 89 & 71 & 53 & 34 & 20 & 7 & 0 & 0 & 0 & 0 & 0 \\
\hline
800 & 820 & 92 & 74 & 56 & 37 & 22 & 9 & 0 & 0 & 0 & 0 & 0 \\
\hline
820 & 840 & 95 & 77 & 59 & 40 & 24 & 11 & 0 & 0 & 0 & 0 & 0 \\
\hline
840 & 860 & 98 & 80 & 62 & 43 & 26 & 13 & 1 & 0 & 0 & 0 & 0 \\
\hline
\end{tabular}

Mario has gross biweekly earnings of [tex]$\$[/tex]784.21[tex]$. By claiming 1 more withholding allowance, Mario would have $[/tex]\[tex]$13$[/tex] more in his take-home pay. How many withholding allowances does Mario currently claim?

A. 3



Answer :

To determine how many withholding allowances Mario currently claims, we need to consider the given tax table and Mario's situation carefully. Mario has gross biweekly earnings of [tex]$784.21, which places him in the "780 & 800" wage range in our tax table. Under this range, the tax data for different numbers of allowances is: | Allowances | Tax Amount | |------------|------------| | 0 | $[/tex]89 |
| 1 | [tex]$71 | | 2 | $[/tex]53 |
| 3 | [tex]$34 | | 4 | $[/tex]20 |
| 5 | [tex]$7 | | 6 | $[/tex]0 |
| 7+ | [tex]$0 | Mario claims that by claiming 1 more withholding allowance, he would have $[/tex]13 more in his take-home pay, which means that the tax amount he currently pays will decrease by [tex]$13 if he claims one more allowance. Upon examining the tax amounts for the "780 & 800" wage range for each allowance, we need to find a difference of $[/tex]13 between two adjacent tax amounts (i.e., between the tax for some number of allowances and the tax for one extra allowance):

- From [tex]$89 to $[/tex]71: Difference is [tex]$18 - From $[/tex]71 to [tex]$53: Difference is $[/tex]18
- From [tex]$53 to $[/tex]34: Difference is [tex]$19 - From $[/tex]34 to [tex]$20: Difference is $[/tex]14
- From [tex]$20 to $[/tex]7: Difference is [tex]$13 - From $[/tex]7 to [tex]$0: Difference is $[/tex]7
- From [tex]$0 to $[/tex]0: Difference is [tex]$0 (no drop because it's already 0) The only pair that has a difference of exactly $[/tex]13 is between the tax amounts for 4 allowances and 5 allowances:

- [tex]$20 (4 allowances) - $[/tex]7 (5 allowances) = [tex]$13 This suggests Mario currently claims 4 allowances (because changing from 4 to 5 allowances results in precisely the $[/tex]13 reduction in tax, translating to $13 more in take-home pay).

Therefore, the number of withholding allowances Mario currently claims is:
[tex]\[ \boxed{4} \][/tex]