tax questions

[MRT144]

i was calculating my yearly income and i arrived at a scary and interesting conclusion.

i calculated my average tax rate right now on my paychecks (that is ytd net pay/ytd gross pay) vs actual taxes i will pay this year (based on calculating each tax bracket im in and fica). theres a 5% discrpency which totals to 1200 dollars.

so, after reading about the tax rates and how they calculate brackets will my paychecks in fact get smaller as i cross the 7300 bracket (no, i havent hit that yet this year). or will they continue to keep up this average that hovers around 15.4% while i will in fact owe that 5% come next year.

i really do not look forward to filling that 1200 dollar gap.

furthermore ive taken 2 exemptions, not being dependent and something else.

[Harry Tuttle]

PM me your total income from the year and I can give you your Federal tax this very moment.

[MRT144]

no need to PM, ytd gross is 6902.50.
calculated gross is 20280 ($10/h*78h/pay period*26 pay periods per year)


i calculated that id pay 4228.42 in taxes total.

[KrazyHorse]

so, after reading about the tax rates and how they calculate brackets will my paychecks in fact get smaller as i cross the 7300 bracket (no, i havent hit that yet this year). or will they continue to keep up this average that hovers around 15.4% while i will in fact owe that 5% come next year.

If there's a ****up you're going to owe it come next year. They shouldn't change your witholding halfway through the year.

Secondly, why did you get 2 exemptions? If you aren't married and don't have any kids you should only get one.

[KrazyHorse]

MRT, are you sure you aren't misreading the form?

Like, FICA contributions are listed in a separate box?

[Japher]

Head of Household and Self?

[Japher]

Weren't taxes due a week ago?

[MRT144]

lines a and b on the w4. no one can claim me as a dependent, and im single and have one job. 1+1 = 2

[MRT144]

Originally posted by Japher
Weren't taxes due a week ago?

this is for next year. i like getting my taxes done in january. i also like having an accurate amount represented on the income portion of my monthly budget.

[KrazyHorse]

You need to pay for a household in which a "qualifying person" lives with you. That basically has to be a relative. If he's living with his brother and his brother's not paying rent then that's okay.

[Harry Tuttle]

MRT, the federal tax on a single taxpayer who claims 1 exemption is roughly $1,446. I think you might be misreading the form.

FICA doesn't mean **** for someone in your tax bracket and it has nothing to do with federal withholding.

[Harry Tuttle]

Also, you cannot claim your job.

This is for the Internal Revenue Service right, not the Canadians?

[KrazyHorse]

Originally posted by MRT144
lines a and b on the w4. no one can claim me as a dependent, and im single and have one job. 1+1 = 2

okay. that's different from number of exemptions you will claim on your return for 2006 though...

[MRT144]

KH why would it be different? and what does that mean for me?

and harry, i still arrive at 2677 for the taxes i will pay. (730+(15%*(20280-7300). how do exemptions play into this number.

[Pekka]

I just had my tax report for last year.. My income was 8000 euros, including student support and summer job. Yay. I guess that makes me a bit poorer than most poor?

That was before rent, before everything.. Oh and they taxed the 8000 euros too.. ~900 euros away from that .

Just thought about it. Pretty ridiculous.