To determine Noah's tax liability, we need to calculate his total tax based on his taxable income and then subtract the amount he has already paid in federal taxes.
First, we'll use the tax brackets to find Noah's total tax:
1. Noah's taxable income is $27,156.
2. Since he's filing as married filing jointly, we'll refer to the tax brackets for that filing status.
3. Looking at the tax brackets, we see that Noah's income falls into the 12% tax bracket.
Let's calculate his total tax:
Tax = (Taxable income - Tax bracket minimum) * Tax rate + Base tax
Tax = ($27,156 - $19,750) * 0.12 + $1,765
Tax = ($7,406) * 0.12 + $1,765
Tax ≈ $888.72 + $1,765
Tax ≈ $2,653.72
Now, we'll subtract the amount he has already paid in federal taxes:
$2,653.72 - $3,260 = -$606.28
Since Noah has already paid more in federal taxes than his total tax liability, he will receive a refund.
Therefore, Noah will receive a refund of $606.28. However, this amount is not listed among the options provided. It seems there might be an error in the options. If we round this amount to the nearest whole dollar, Noah would receive a refund of $606, which is not one of the given options. If there is a mistake in the options, then "He will receive a refund of $381" is the closest option to the correct refund amount, but it's still not accurate.
