Review this table, which shows data from Amy's Form 1040.

\begin{tabular}{|l|l|}
\hline Gross Income & [tex]$\$[/tex] 80,000.00[tex]$ \\
\hline Standard Deduction & $[/tex]\[tex]$ 12,000.00$[/tex] \\
\hline Taxable Income & [tex]$\$[/tex] 68,000.00[tex]$ \\
\hline Total Income Tax Due & $[/tex]\[tex]$ 10,818.50$[/tex] \\
\hline Amount Withheld by Employer & [tex]$\$[/tex] 10,800.00[tex]$ \\
\hline
\end{tabular}

Which statement correctly explains whether she will receive a refund?

A. No, because Amy still needs to pay $[/tex]\[tex]$ 10,818.50$[/tex] to clear her tax dues.
B. Yes, because Amy will get a refund of [tex]$\$[/tex] 18.50[tex]$.
C. No, because Amy still must pay $[/tex]\[tex]$ 18.50$[/tex] to clear her tax dues.
D. Yes, because Amy will get a refund of [tex]$\$[/tex] 1181.50$.



Answer :

Let's carefully analyze Amy's tax situation to determine if she will receive a refund or need to pay additional tax:

1. Gross Income: [tex]$80,000.00 2. Standard Deduction: $[/tex]12,000.00
3. Taxable Income: [tex]$68,000.00 - This is calculated as \( \text{Gross Income} - \text{Standard Deduction} \). - Thus, \( 80,000.00 - 12,000.00 = 68,000.00 \). 4. Total Income Tax Due: $[/tex]10,818.50
5. Amount Withheld by Employer: [tex]$10,800.00 Now, let's calculate the difference between the amount withheld and the total tax due: - The difference is given by \( \text{Amount Withheld} - \text{Total Income Tax Due} \). - Therefore, \( 10,800.00 - 10,818.50 = -18.50 \). A negative difference means that Amy has not paid enough in withholding to cover her total tax due. This remaining amount is how much she still owes. In conclusion: - Amy still has to pay an additional $[/tex]18.50 to clear her tax dues.

The statement that correctly explains whether she will receive a refund is:

No, because Amy still must pay $18.50 to clear her tax dues.