<p>I’m a student and I’m kind of tripped up by this question on the CSS.</p>
<p>Question: Estimate the income tax you will pay for 2007 using your 2006 IRS Form 1040EZ, line 11 and 2007 pay stubs and other financial documents.</p>
<p>Instructions Given by CSS: </p>
<p>Estimate your 2007 taxes by using your 2006 tax return and your estimated 2007 AGI. To figure the percentage of AGI represented by the US tax divide 2006 IRS Form 1040EZ line 10 by line 4 and apply the resulting percentage to your estimated AGI. Do not use your estimated withholding (from your W-2s) as estimated tax paid because in most cases actual tax paid will be different.</p>
<p>***Ok, so when I divided line 10 by line 4, I got (0.0345) as a percentage. I’m positive this is correct.</p>
<p>So to estimate my 2007 taxes, I multiply this percentage with my estimated 2007 AGI. I have my last pay stub, so I know it’s $2700. When I multiply, I get $93.197</p>
<p>Is $93 dollars what I put down as my estimated 2007 taxes? How is that possible?</p>
<p>I thought $93 would be what is returned to me. So am I supposed to subtract $93 from my YTD Total Withholding, which is about $610 dollars?</p>
<p>I’m confused. Help would be appreciated.</p>