Carrie is an employee of Target and her taxable wages are $228,900 for 2022. When Carrie completed her W-4 on her first day of employment, she indicated "Single" filing status and "1 dependent under the age of 17". Carrie receives her W-2 at the end of the year and the following tax withholdings are listed: Social Security $9,114.00 Medicare $3,579.15 Federal Withholding $47,335.50 It is currently April of 2023 and Carrie is completing her 2022 Federal Income tax return (Form 1040). Carrie has discovered she will receive a very large refund after filing her return. Carrie is upset that Target withheld so much tax during the year (as she would have rather received that extra amount in her paychecks during the year). Explain to Carrie how each tax withholding amount below was calculated and why she may have the significant refund. a. Social Security b. Medicare c. Federal Withholding d. What could be the reason for the over-withholding of the federal income tax? e. What could Carrie do so that this doesn't happen in 2023.

Answer rating: 100% (QA)

a Social Security Social Security tax is calculated at a rate of 62 on the first 147000 of taxable wages for 2022 Since Carries taxable wages exceed t... View the full answer