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|c|}
\hline If the wages are - & \multicolumn{10}{c|}{ And the number of withholding allowances claimed is } \\
\hline \multirow{2}{}{ At least } & \multirow{2}{}{\begin{tabular}{c}
But less \\
than
\end{tabular}} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & [tex]$10+$[/tex] \\
\hline & \multicolumn{8}{|c|}{ The amount of income tax withheld is - } \\
\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]$\$784.21$[/tex]. By claiming 1 more withholding allowance, Mario would have [tex]$\[tex]$13$[/tex][/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'll follow a step-by-step approach using the given tax table and the information about his earnings and extra take-home pay.

### Step-by-Step Solution

1. Identify Mario's Current Earnings Range:
- Mario's gross biweekly earnings are [tex]\( \$784.21 \)[/tex].
- This falls within the range [tex]\( \$780 \leq \text{earnings} < \$800 \)[/tex].

2. Extract the Relevant Row from the Tax Table:
- For earnings of [tex]\( \$780 \)[/tex] to [tex]\( \$800 \)[/tex], the withholding amounts based on the number of allowances are:
[tex]\[ \begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \text{At least} & \text{But less than} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10+ \\ \hline 780 & 800 & 89 & 71 & 53 & 34 & 20 & 7 & 0 & 0 & 0 & 0 & 0 \\ \hline \end{array} \][/tex]

3. Understand the Change in Withholding Amount:
- Mario claims one more withholding allowance which results in \[tex]$13 more in his take-home pay. This means the tax withheld decreases by \$[/tex]13.

4. Identify the Current Withholding Allowances:
- We need to find two consecutive columns where the difference in tax withheld is \[tex]$13. Let's examine the differences: - Difference between 34 (3 allowances) and 20 (4 allowances): \( 34 - 20 = 14 \) - Difference between 20 (4 allowances) and 7 (5 allowances): \( 20 - 7 = 13 \) Here, we find that the difference of \$[/tex]13 occurs between 20 (4 allowances) and 7 (5 allowances).

5. Conclusion:
- The change in tax implies Mario currently claims 4 withholding allowances (where the tax withheld is \[tex]$20). - Claiming 1 more (i.e., moving to 5 allowances), the tax withheld becomes \$[/tex]7, providing an additional \$13 in take-home pay.

Therefore, Mario currently claims 4 withholding allowances.

Thus, the correct answer to the question is:
[tex]\[ \boxed{4} \][/tex]