If I earn $218.75 and $96.72 dollars are deducted for taxes, what is my income tax rate?

Question

I should have made 218.72 minus taxes, however I only have recieved 122.03. I'm trying to figure out how much, if anything, my employer owes me. I live in Bloomington, Indiana, USA, and earn approx 26k per year at 23 years old. Not enrolled in college at this point.

Answer 1

Can you provide the exact breakdown of your paystub?

List out each item and the amount.

Answer 2

Your income tax RATE is something that can only be accurately computed based on the entire income for the year. Federal withholdings are based on a table which infers your annual income based on how much you earned in the pay period. Some states, and I believe IN is one of them, have a relatively flat tax rate, so usually a fixed percentage of your income is deducted for state tax. Besides that, 6.2% is deducted for FICA (Social Security) and 1.45% for medicare.

- A Damn Fine Tax Advisor

Answer 3

your analysis isn't complete ... it 'should' look like this: you earn an added $10,000 through hard work and pay an added 3500 tax. this leaves 6500 to invest. suppose you invest that 6500 in a company and the company makes 12 percent per year, before taxes, on capital invested. that's 780 dollars income and, at 35% marginal tax rate on company income, they pay 273 dollars, leaving 507 that is 'yours'. of this, they pay 200 in dividends and you pay income tax on those dividends -- at the new marginal rate [in 2013, after Obama's dividend tax increase] of 35% ... or 70 dollars. thus, in order to receive 130 spendable cash dollars every year [assuming the company continues forever and the dividend stays the same], you paid 3500 tax up front, PLUS the company pays another 273 a year in tax and you pay another 70 a year in tax. total taxes -- 3500 up front, plus 343 a year in order for you to get 130 a year. if the company is a wise investor of your capital, it'll use the 307 added capital dollars to increase their business -- this is 4.72% of the 6500 you invested, so your cash income 'should' go up the same 4.72% per year ... which is $6.14 [not a misprint -- six dollars fourteen cents] increase per year. But to get this munificent 130 dollars spendable cash per year, you had to first earn $10k and NOT spend it. That's a big 1.3 percent annual cash on cash return on your added work !! ONE and THREE TENTHS percent per year. Now, is it any wonder that economists say that Americans don't save enough?? no. is it any wonder that they say America has a shortage of capital investment? no. would that added capital investment increase average wages paid? yes. do you see a cent of that anywhere? no. [it hasn't happened]

Answer 4

something is seriously wrong here if all of the deductions were for taxes. Look at your pay stub again and see what was deducted - if the entire deduction was for taxes, talk to your payroll department.

Answer 5

that sounds like a lot of tax for such a small paycheck. better check all the details to see exactly what was taken out and what it was for

Answer 6

Please list all of the deductions:

SS Tax:

Medicare Tax:

Federal Income Tax:

State Income Tax:

Any other withholdings such as insurance, etc:

Answer 7

your tax rate would be about 45%, its usual to take this much out if you havent given your employer your tax details, if you have then your employer is taking about twice as much as they should if they are paying it to tax atleast your going to get a good refund.

Answer 8

yes