Okay I got my first pay cheque in the US, in Texas.... What are these tax terms..... What the hell is W/H TAX??!?!?! HELP !!!
Do I get any of it back ?!?!?!?!?! maybe?
FICA-OASDI
FEDERAL W/H TAX
FICA-HI
2006-10-13 13:52:31 · 5 answers · asked by swma76 2 in Business & Finance ➔ Taxes ➔ United States
FICA-OASDI is the tax to cover Social security so US citizens over the age of 65 get an income. It is also used to fund US citizens under the age of 65 that are disabled, but most are retirees. This is currently the single largest expenditure by our government.
FICA-HI is the tax to cover Medicare so US citizens over the age of 65 get subsidized health care. This benefit has been recently increased with the prescription drug act which also permits the elderly to purchase drugs at a reduced rate.
Federal w/h tax is the government tax on your earnings. If you accidentally overpay, you will get a refund when you file your taxes in April. This is not something to be desired since the government does not pay interest on the tax-free loan.
Otherwise, you get none of the taxes back.
2006-10-13 14:01:38 · answer #1 · answered by Jeff S 3 · 0⤊ 0⤋
Federal W/H Tax is the amount of your income that was withheld for purposes of paying your federal income tax. This will be deducted out of every paycheck at whatever annualized rate that your employer expects you to achieve. So, for simplicity, let's say you make $1000 per week, which would be $52,000 per year. Income of this amount (not taking into account any deductions or exemptions) would put you (assuming you file your return as a Single taxpayer) in the 25% tax bracket. This means that your employer would withhold $250 of your $1000. In doing this, you will not have to pay in as much (hopefully, nothing at all) when you file your tax return. In some cases, you may even get a refund. You will not get the FICA taxes back, I'm sorry to say. Those cover the social security tax and medicare tax.
2006-10-13 22:00:27 · answer #2 · answered by Tax Girl 1 · 0⤊ 0⤋
WH is withholding aka FIT. This is money withheld that is sent in by the employer to the federal government. When you file your return you are refunded any amount that is more than your federal tax due.
FICA is Social Security. A total of 7.65% is held out of your pay and the employer puts in a matching amount of 7.65%; which is credited to you for if and when you ever retire and draw social security. The OASDI & HI are the two segments of the FICA TAX; It is split into two different amount for social security and medicare. 6.2% & 1.45%.
Texas has no state income tax so you see no state tax withholing on your pay stub.
2006-10-14 12:22:09 · answer #3 · answered by acmeraven 7 · 0⤊ 0⤋
Federal W/H tax is the tax we pay to feed our government. You decide how much tax will be taken out of your check based upon the W-4 form that you completed. Whether you get any back or end up paying more will depend upon the 1040 form that you fill out early next year.
FICA-OASDI is the tax you pay towards Social Security, which you and a lot of others will have to depend upon when your old and retired.
FICA-HI is the tax you pay towards medical insurance, which you and a lot of others will have to depend upon when your old and retired.
Be thankful that you work in Texas. Texas does not have a State W/H tax like most other states have.
2006-10-13 21:06:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They are all income taxes; social security, medicare and federal income tax. How much you get back when you file your taxes depends on many things.
2006-10-13 21:01:42 · answer #5 · answered by porkchop 5 · 0⤊ 0⤋