Christopher receives gross monthly wages of \( \$ 5,250 \). He is married and is entitled to 3 withholding allowances. How much income tax will be withheld, based on the percentage method tables in Exhibits \( 9-1 \) and \( 9-2 \) ? select one: a. \( \$ 392.55 \) b. \( \$ 433.92 \) c. \( \$ 67125 \) d. \( \$ 787.50 \)

To find the correct amount of income tax to withhold from Christopher's gross monthly wages based on the percentage method, we start by calculating his taxable income considering his withholding allowances. With 3 allowances, this typically reduces his taxable income. First, based on the IRS withholding allowance for 2023 (approximately $500), Christopher's total allowances reduce his wages by about $1,500. This means his taxable income would be \( \$ 5,250 - \$ 1,500 = \$ 3,750 \). Now, referring to the percentage method tables, we can find the applicable tax rate for this amount. Let's say the applicable percentage is around 12% for this income level. Therefore, the income tax withheld would roughly be \( 0.12 \times \$ 3,750 = \$ 450 \). Among the choices provided, the closest answer to what we calculated would likely be **b. \$ 433.92**, as taxes can vary slightly depending on the specific rate tables used. If you’re curious about tax withholding tables, they often fluctuate from year to year and can depend on various factors, like filing status and state tax rates. Understanding these tables and keeping up with any changes can save you from unexpected surprises when tax season rolls around! Additionally, effective tax planning also considers deductions and credits that might further lower your taxable income. Engaging an accountant or using tax software can be incredibly beneficial in identifying max tax savings, ensuring you're not paying more than necessary!