Lawanda Shelbold is a registered nurse with an annual salary of $32,000. She is married, has 1 child, and claims 3 withholding allowances. If the state tax rate is 3.5 percent, how much is withheld annually from her gross pay for federal and state income tax?

To calculate the annual amount withheld from Lawanda Shelbold's gross pay for federal and state income tax, we first need to determine her federal withholding and then her state withholding.

Federal Income Tax:

To calculate federal income tax withholding, we need to know Lawanda's filing status, as well as her allowances and any additional withholding. Let's assume she is married filing jointly with one child.

First, we find Lawanda's taxable income by subtracting her allowances from her salary:

$32,000 (annual salary) - $4,300 (allowances for married filing jointly with 1 child, as of 2022) = $27,700

Next, we use the IRS tax brackets for the corresponding filing status to determine the federal income tax withholding.

State Income Tax:

To calculate state income tax withholding, we use the state tax rate, which is given as 3.5 percent.

Now, let's calculate the annual amounts withheld for federal and state income tax:

1. Federal Income Tax:

- Find Lawanda's federal income tax using the tax brackets for married filing jointly:

- For 2022, the tax rate for income between $19,901 and $81,050 is 12%.

- Taxable income = $27,700

- Federal income tax = $27,700 * 0.12 = $3,324

2. State Income Tax:

- State tax rate = 3.5%

- State income tax = $32,000 * 0.035 = $1,120

Now, we add the federal and state income tax withholdings:

$3,324 (federal income tax) + $1,120 (state income tax) = $4,444

So, Lawanda Shelbold would have $4,444 withheld annually from her gross pay for federal and state income tax.