I mean even these low wage salaries are not exempted from federal and state taxes as they are in europe, for instance? And, on average one can conider that 20% is removed from the nominal salary? is that correct.. thanks for you help guys really!
2006-10-17 02:21:38 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Country runs on tax so that's OK .
2006-10-17 02:28:46 · answer #1 · answered by raj_sharmausa@yahoo.com 3 · 0⤊ 1⤋
No, that's not correct, is high.
You will pay the 7.65% social security tax on your entire earnings.
As for federal income tax, you would not pay 15%. If you are single, you'll get an exemption for yourself (last year was $3200) and a standard deduction (last year $5000) leaving you with taxable income of $5000-$6000. This is the 10% bracket, which would be tax of $500-$600, which is around 4% of your total income. Unless you are married or have a dependent child, you would not be eligible for the Earned Income Credit - adjusted gross income limit last year for a single person with no dependent children was $11,750, and you're over that. I am assuming you are not a dependent of someone else. If you are, then these numbers could change.
State taxes vary on where you live, but 10% would be high. Some states have a flat rate for everyone. In some states the percentage varies depending on your income, goes up for people with higher incomes. And a few states have no state income tax. If you live someplace that does have a state tax, you'd probably pay under 5%.
Some cities or municipalities also levy an income tax - this depends on where you live.
2006-10-17 11:48:00 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
the lowest federal tax rate above 0 is 10% not 15%
When you prepare your taxes you reconcile whether too much has been taken from your paycheck based on your marital filing status and # of dependents. Best thing is to claim the most exemptions on form w4 when you start working. If you don't expect to owe tax (only working temp job) & last year you didnt owe tax, then you can can claim to be exempt on form w4 & state version of w4 for state taxes and then they wont withhold tax from your paycheck.
Social security of approximately 7.65% is also taken out
which you dont have any control over. If you eventual get a high paying job there this rate gets lower after reaching the annual threshhold amount
2006-10-17 10:58:01 · answer #3 · answered by goldenboyblue 3 · 0⤊ 0⤋
No, you are not right. Follow me on this. If you earn 1,100 per month is $ 13,200.00 for the year. In 2006 if you are single you will have a standard deduction of 5,100.00 and standard exemption of 3,25000; for a total of 8,350.00; subtracted from the year's gross; leaving you with 4,850.00 taxable for year. First 10k is taxed at 10% so your federal income tax due for 06 would be $ 485.00 You will also have removed from your check .0765 % for FICA (Social Security Withholding). Your state income tax depends on your state of residence.
2006-10-17 10:32:19 · answer #4 · answered by acmeraven 7 · 1⤊ 0⤋
I think it also depends upon your exemptions and deductions as well. I pay less in taxes now that I'm married and have a family then I did when I was single.
2006-10-17 09:29:18 · answer #5 · answered by Sativa 4 · 0⤊ 0⤋
You will always have taxes taken from your pay check,, but at filing time you will have deductions that will lower your tax liability.
2006-10-21 09:14:19 · answer #6 · answered by mrs.godzilla9970 1 · 0⤊ 0⤋
if you only make $400 a month you still pay those taxes every paycheck, but in april when you get your W2s you get a lot of your money back.
2006-10-17 09:31:26 · answer #7 · answered by onlylove41 4 · 0⤊ 0⤋