That seems higher than the tax brackets I remember in my college accounting class. If I'm heading for a refund @ the end of the year, how can I get them to take less out so I don't have for the end of a year to get it back?
I live in North Carolina, here is what I see on my paycheck:
Fed Withholding 13%
Fed MED/EE 1.45%
Fed OASDI/EE 6.2%
NC Withholding 6.25%
What is all that stuff?
2007-03-17 05:12:12 · 11 answers · asked by Be nice, or at least funny 2 in Business & Finance ➔ Taxes ➔ United States
You need to claim more allowances on your IRS form W-4. That's the form you fill out for your employer before you start working. Tell your employer you need to change your allowances and he/she should give you a new form to fill out. The more allowances you claim the less they take out of your check. Be carefull though... if you claim too many, you might owe money at the end of the year. My advice is to claim one more than you currently have.
2007-03-17 05:20:24 · answer #1 · answered by Jim 2 · 0⤊ 0⤋
If you get a large refund go to who ever handles your payroll, generally in Human Resources, if a larger company, and fill out a new W-4. That will allow you to modify the take home pay. Here are some general tax savings ideas:
1) If you don't own a house and are going to stay in the same place for 4 to 5 years, save up a large down payment and buy a house. The interest payments are deductible and the appreciation in value is yours, not the landlords.
2) Are you taking advantage of your employer's cafeteria plan for benefits, such as health care insurance, 401(k) etc. Many of these expense can come out of your check before taxes, thus lowering your taxable income.
3) Look into traditional IRA and Roth IRAs. Traditional IRAs will save you tax dollars today. Roth IRAs to me are generally better long term for tax savings.
4) Go to the public library and look at Kiplingers Personal Finance and look at the web at Smartmoney.com and Yahoo finance for ideas.
5) Are you contributing to your church or favorite charity. These are generally tax deductible and help good causes that you believe in. Check them out before you give to be sure they handle money responsibly. If they do, you will be making a difference and lowering your tax bite.
6) Alway get out of debt. Let the only debt that you have be your mortgage. Only interest on mortgage debt is tax deductible. When you pay interest to anyone, even your mortgage, that is like giving someone else part of your paycheck. And unlike in #5 above, you aren't helping out a good cause and the only difference you are making is to lower your standard of living. Interest payments are just as bad as a tax.
2007-03-17 05:35:25 · answer #2 · answered by Remember Back 3 · 1⤊ 0⤋
If you know how to tighten yur belt and live you can pay much less taxes. Now you can put up to 20000or more away depending on yur age to reitrement a/c. So if you can do that yu are only going to pay taxes for half of your income.
13% is the fed. tax
1.45 is the medicare tax, so after 62 you will eligible for medicare
6.2 is your social security tax
and the last one is yur state tax.
2007-03-17 06:47:09 · answer #3 · answered by "Vallamkali" 2 · 0⤊ 0⤋
You will need tax deductions (wife, children to see more back at the end of the year).
The more you make the more they take, just the way it is in the good ole USA.
2007-03-17 05:16:34 · answer #4 · answered by sunset 4 · 0⤊ 0⤋
Considering the state of the world we live in... I wish you would pay more...
or at least give me some of that 41k because I educated kids for "No Child Left Behind" and got royally skrewed on my taxes this year... (they make you file a 1099 like it's "extra income") and I made much less than you to begin with... like a fraction...
Your income for the year would just barely pay off my student loans.
2007-03-17 07:28:21 · answer #5 · answered by rabble rouser 6 · 0⤊ 2⤋
Don't forget your sales taxes, the taxes embedded into the cost of everything (i.e. 1/2 the cost of gasoline and cigarettes is taxes and its 28% for consumer products i.e. corporate taxes just get passed on to the consumer), property tax (wheather you pay the landlord or the tax agency directly YOU STILL PAY FOR IT). All total its more like 50% or more hun. LOL and some people still want to raise our taxes!
2007-03-17 05:25:30 · answer #6 · answered by Esmeralda 4 · 0⤊ 1⤋
It is pretty typical for someone earning your pay to be taxed at a rate of 26% to 32% depending on which state you live in.
2007-03-17 05:18:17 · answer #7 · answered by Muga Wa Kabbz 5 · 2⤊ 0⤋
quit complaining. I'm in a 40% tax bracket.
2007-03-17 05:16:37 · answer #8 · answered by job e 2 · 0⤊ 0⤋
What's your problem, you're on a pretty good screw. Think yourself lucky you're not on three grand a year or less like some people are.
2007-03-17 05:29:41 · answer #9 · answered by Loxie 4 · 0⤊ 0⤋
What's up with you people telling everyone your salaries. Shouldn't you talk to your accountant about this or are you advertising.
2007-03-17 05:19:03 · answer #10 · answered by surffsav 5 · 1⤊ 0⤋