Use the percentage method of withholding to find the amount of federal income tax withheld each week.

Mitch is single, claims 4 allowances, and earns $587.94

To calculate the federal income tax withheld using the percentage method, we'll follow the IRS guidelines for determining tax withholding. We'll assume the calculations are based on the IRS Circular E (Employer's Tax Guide) which provides income tax withholding tables. Here's the step-by-step breakdown:

### 1. **Find the taxable wages**
Since Mitch earns $587.94 weekly, we need to subtract the value of his allowances. Each allowance reduces the taxable income.

The value of one withholding allowance per week (as per IRS guidelines) is **$93.27**.

Mitch claims **4 allowances**, so:

\[
4 \times 93.27 = 373.08
\]

Now subtract this from Mitch's weekly earnings:

\[
587.94 - 373.08 = 214.86
\]

So, Mitch's taxable income for the week is **$214.86**.

### 2. **Apply the IRS Percentage Method Table**
For single individuals, the IRS provides a table showing how much tax should be withheld based on the taxable wages. For the year 2023, assuming this is the tax guide in use, taxable wages between $0 and $229 have no federal income tax withheld.

Since Mitch's taxable income of **$214.86** falls within this range, no federal income tax is withheld.

### Conclusion:
The **federal income tax withheld** from Mitch's weekly paycheck is **$0**.

Would you like more details or clarification on this process?

---

Here are 5 related questions to expand on this topic:
1. How do withholding allowances affect taxable income?
2. What is the difference between the percentage method and wage bracket method for tax withholding?
3. How are withholding amounts adjusted if Mitch claims a different number of allowances?
4. What happens if Mitch’s weekly earnings increase or decrease?
5. How does filing status (single, married) affect tax withholding?

**Tip:** It's a good idea to periodically review your withholding allowances, especially if your financial situation changes, to avoid over- or under-withholding taxes.

Use the percentage method of withholding to find the amount of federal income tax withheld each week. Mitch is single, claims 4 allowances, and earns $587.94.

Learn how to calculate federal income tax withheld each week for a single individual with 4 allowances and a weekly income of $587.94. This problem demonstrates the IRS percentage method and taxable income calculation, perfect for high school economics or business math students.

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