I think the total earnings for the year will be approx 20,000. for the year. I have five kids, but would probably claim 0 deductions. A web site with info would help too. I was thinking it might be 15-25%. But I really hope I'm wrong.
2006-08-01 11:45:54 · 14 answers · asked by donworybhapy 2 in Business & Finance ➔ Taxes ➔ United States
to answer kittyrogers
I thought if you didn't claim your kids as deductions then they would take out more for taxes. Making sure that you either don't owe any more taxes or hopefully you get some back.
2006-08-01 19:32:06 · update #1
If you claim 0 allowances on your W-4, and your biweekly check is around 800, which is what 10/hr would be., the amount taken out of your check will be 28.30 plus 15% of the excess over 385. So 800-385=415*15%=62.25+28.30= $90.55 will be taken out of your check every two weeks. As far as total income tax is concerned, you will get 5 exemptions plus yourself, and your spouse, (if you're married). each deduction is worth 3300 this year, plus you will get the standard deduction of $5150(10,300 if married. You didn't state whether you're married or not so I will do both for you.
Single: 20,000-5150-19800(5 exemptions plus you) = Less than 0
Married:20,000-10300-23100(5 exemptions plus you and spouse = Less than 0
Therefore, no matter what, your taxable income is zero, which means you will get back everything you pay in. $90.55 *26 pay periods = $2354.30, you will get this amount as a refund.
This is not necessary though, with your income situation, you should get every penny you can get when you can. Therefore, I recommend claiming 7 allowances on your W-4. This will ensure that federal takes no withholdings out of your check. Because you will not owe any taxes anyway, you will have no business with the irs at the end of the year. If you haven't already, make sure that you claim *7* exemptions on your W-4. I am an accounting major in college, and I am 100% correct on this. You will be better off!
Other taxes: FICA will take out a fixed amount no matter what, this fixed amount is 7.65% of total income. In terms of your paycheck, they will take out $61.20 every two weeks, and a total of $1591.20 for the entire year. You will not get any of this money back. There are also state taxes, and in your situation I would say that you will probably end up with no taxable state income as well. Local taxes vary depending on the city you work in.
If you have any other tax related questions, feel free to contact me!
2006-08-05 18:15:35 · answer #1 · answered by Josh 4 · 0⤊ 0⤋
With 5 kids, you had better claim them! The Earned Income Credit is something like $2500 per kid, I think! Are you married? If so, is your husband claiming them? That would be the only time you wouldn't be able to claim them (if someone else is). As for income tax, the IRS is going to tax you riduciously high ANYway...I try to figure it on the high end, so figure it at 28%. That way, if its a little less, you will be pleasantly surprised.
Ex: $10/hr, 80 hrs every 2 weeks = $800, $1600 per month (not taking into any consideration possible overtime. $800-28% is $224, so you wind up with about $576 every 2 weeks.
2006-08-05 21:17:27 · answer #2 · answered by kath68142 4 · 0⤊ 0⤋
It is beneficial to claim additional dependents (beyond the 2 for the earned income tax credit) because you can receive other credits such as the Child Tax Credit, Additional Child Tax Credit and Child and Dependent Care Expense Credit. The great thing about the Earned Income Tax Credit is that you can get more back than you paid in taxes! Its an anti-poverty program so the governement is basically giving you money because they want you to work but they know you need an extra boost to meet additional needs.
The http://www.icanefile.org site seems like a great resource to claim your taxes for the 2006 tax year.
2006-08-02 05:53:21 · answer #3 · answered by Jeanette 2 · 0⤊ 0⤋
While you will get taxes taken out of your paycheck, you will definitely get all of the money back you pay in taxes AND you qualify for something called the Earned Income Tax Credit! Last year, those eligible for the Earned Income Tax Credit could have received up to $4,400 back from the IRS! There is a great website, www.icanefile.org that will help you get the earned income tax credit when you file your taxes!
I encouraged you to really look into the Earned Income Tax Credit and make sure you get it in your 2006 tax return!
Best of luck!
2006-08-01 14:16:09 · answer #4 · answered by Susie E 1 · 0⤊ 0⤋
I'll take the Fair Tax idea myself for my preference, although I understand that repeal of the 16th Amendment is apt to be a long and arduous process on a Constitutional level. A flat tax would admittedly be better by far than the current system, but the roots of the current insane tax system would still remain untouched. (It's my understanding that even IRS agents helping taxpayers doing their taxes don't understand the tax code in full, which takes up tens of thousands of pages; at best you are likely to get a right answer half the time, if that.)
2016-03-27 13:29:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I am assuming you are claiming 0 on your W-4 so they withhold the most amount. On your tax return, you should definitely claim the kids unless the noncustodial parent is claiming them and you have given the noncustodial parent a form 8332. You would probably be eligible for the Earned Income Credit and could actually get back more than you paid in!
2006-08-03 11:04:50 · answer #6 · answered by WendyD1999 5 · 0⤊ 0⤋
If you claim your children you will get all of your money back. If you are not married, you might want to let the other parent claim some of the children because you do not need to claim all of them to get all of your money back. As far as how much the IRS withholds, that depends on how you fill out your W4. If you claim 5 dependents on your W4 they will take out very little for federal withholdings, however they will still take out for social security no matter how many dependents you claim. As far as the earned income credit... you can claim that for up to 2 children that are yours and that live with you. Claiming more than 2 will not get you any more money back.
2006-08-01 17:38:37 · answer #7 · answered by momma 2 · 0⤊ 0⤋
The estimate is diffrent for every state. Plus if you work overtime or anything like that that takes some estimate too so there is really no knowing how much will be taken out.
2006-08-01 11:52:54 · answer #8 · answered by 0 3 · 0⤊ 0⤋
Tax tables for 2006, starting with page 36: http://www.irs.gov/pub/irs-pdf/p15_05.pdf
2006-08-01 11:52:48 · answer #9 · answered by 1big teddy graham 4 · 0⤊ 0⤋
Why on earth would you not claim deductioons for the children? Your best bet is to check with a CPA.
2006-08-01 11:49:49 · answer #10 · answered by Anonymous · 0⤊ 0⤋