Nevan’s gross pay was $45,150 last year. The federal income tax withholding from his pay was 16% of his gross pay. Nevan determined the federal income tax he owes is $6,150. Which of the following is true?

A. Nevan owes an additional $984 in federal tax.

B. Nevan owes an additional $1,074 in federal tax.

C. Nevan will receive a refund of $984.

D. Nevan will receive a refund of $1,074.

Question

Nevan’s gross pay was $45,150 last year. The federal income tax withholding from his pay was 16% of his gross pay. Nevan determined the federal income tax he owes is $6,150. Which of the following is true?



A. Nevan owes an additional $984 in federal tax.

B. Nevan owes an additional $1,074 in federal tax.

C. Nevan will receive a refund of $984.

D. Nevan will receive a refund of $1,074.