how much is the state tax and the federal tax deducted from my check everytime i am paid?

Question

my employer told me he will give me the form to declare the taxes at the end of the year, but since i am new in this country working, he told me to save "some money" for the taxes for the next year. i want to know how much is the % i should save from my 2 week check?

Answer 1

First of all, it depends on what state you are in on what your state tax will be.... go to the states website (i.e. www.state'sname.gov-- if you are in ohio, that would be www.ohio.gov) and look on their tax site. It should give you a tax rate (i.e. 2% or 3.4%) and you can use that as a guide.

For federal taxes, it really depends on your income. You can owe anywhere from 0%-28% effective. It also depends on the number of exemptions you take. I'm not sure how easy it is to use, but you can go to www.irs.gov and they have a calculator to estimate your tax.

The form your employer needs to give you to take out the appropriate amount of tax is a W-4. Get this submitted as soon as possible to avoid a headache. Consult a tax professional if you still have questions.

Answer 2

It sounds like you are not an employee but an "independent contractor". Since you are new to US taxes, I would strongly urge you to do one of two things.

1. Get a regular job that withholds taxes until you become familiar with our tax system.

2. Consult with a CPA to determine how much you should set aside. You will need to make quarterly payments of your estimated taxes to the IRS if your pay is not subject to withholding. The calculations for this can be tricky and you should seek professional assistance. Depending upon your total income, you will need to set aside between about 30% and 45% of your total pay for taxes.

Answer 3

It sounds like HR is making a mistake. in case you requested them to do withholding, they must be doing it, yet they are not. yet do not worry about the IRS coming once you. Withholding is largely purely pre-paying your taxes. in case you do not do it, you purely ought to pay all of your taxes on tax day, somewhat of having already paid maximum of them or getting money back. the in trouble-free words detrimental element that ought to take position is you would ought to pay a penalty; in actuality the IRS likes you to pay taxes once you've income; in case you wait until eventually the properly of the tax twelve months, the penalty stands out as the pastime they ignored out on through no longer getting you money faster.