Single mom, 2 kids, $12/hour, how much taxes taken out of each check?

Question

I need to know if this job would be worth taking. The job is an hour away. I figured in all bills, groceries, estimate on gas money, and cigarettes to be $1,817/month not counting ANY spending money. Job pays $12/hour plus $85/week child support coming in. I don't know what taxes would be like on this pay as a single mom with two kids. Would this be worth the one hour drive to work and one hour drive back every day?

Answer 1

you could always claim married and 6 and they would take out very little tax. When in comes time to file you taxes you would file head of household with 2 dependents and should still get money back!

Answer 2

Assuming you are going to be working full time - 40 hour work week - you should expect your gross pay to be just under $2000 per month. Social Security and Medicare withholdings are going to take about $150 off the top before you even get into state and/or federal tax.

The good news is you shouldn't have any federal withholding as long as you claim head of house hold and 4 - and anything that was withheld you would probably get back at the end of the year. When you file your return you would also get back close to the maximum on earned income credit. Of course this doesn't really help your month to month expenses.

One question: how much do you spend per month on cigarettes? You could probably save $50-$100 per month if you quit.

If you did take this job, would you have any options for car pooling? If you shared the ride with just one person you could drastically reduce your expenses for gas.

Look for other places you could save money such as reducing or eliminating cable TV and changing your phone/mobile phone service.

The $85 per week in child support gives you a little breathing room, but unless you are really padding your estimate for bills, I think this job would just barely allow you to make it and what happens if you (or one of your children) gets sick and you miss a couple days of work. Also try to anticipate how it would affect your life - especially your kids - if you're away from home 50 hours a week and an hour away if something happens.

Good luck whatever you do. Seriously though, look for ways you can reduce what you pay for various expenses. I recently did this and freed up almost $150 per month.

Answer 3

What they'll take out will depend on what you put on your W-4, but for federal, you shouldn't end up owing anything and would get any withholding refunded if at least one of the kids is under 17 so you can get the child tax credit for them. And you should be eligible to receive an earned income credit somewhere between $2000 and $3000.

They will, of course, take out 7.65% for social security and medicare, or around $160 per month. And depending on where you live, there might be state or local taxes.

Only you can decide if it's worth it - an hour's drive each way is a long drive, not only taking your time but also wear and tear on your car. If there aren't any comparable jobs available near where you live, it might be reasonable, but a job nearby even at $1 or so less an hour would probably be a better deal for you if there are any available.

A side comment, and I know, none of my business really, but consider trying to ditch the cigarettes, for your sake and for that of your kids. You'll be healthier, and have a lot more money.

Good luck.

Answer 4

Unless I am figuring it wrong, which is entirely possible, as I did it in my head, you would have approximately $2060 coming in before taxes if you take the job. That leaves you approximately $100 a week, and that's before taxes. I could not find a tax table that included information if you have deductions, but I am guessing that taxes would be 20%-25%, which means $75-$80 in your pocket for each week. I guess you have to ask yourself if you can make it with that much, or slightly less, spending money for each week.

I know that there will be less money taken out if you claim all your deductions on your W-4, but the danger there is not having quite enough money taken out, and then owing at tax time.

The other problem is that the job is quite far away, and there is no knowing if gas is going to go up more in price. If it continues to go up, your estimates of expenses will be thrown off, which means even less money left over after bills. Additionally, you didn't say if you factored in car repairs, should they be needed. That can really throw your estimate off, too, unless you have some money in savings.

I really think that the best thing for you to do is call the IRS. They should be in the government section of your telephone book. You may have to hold for a while, or go through that annoying phone loop business with the recordings, but you should be able, eventually, to get a real, live person on the phone. Explain your problem to them, and ask them if they can tell you what your taxes would be like on that income. They should be able to tell you what the federal tax and social security deductions will be. You can probably also contact your state tax commission and find out what your state tax will be. If you can get some fairly accurate numbers from them, you will have a good idea of whether or not the job is worth it.

I really wish I could be of more assistance. I wish you the very best.

Answer 5

I don't think you'll need to worry about Federal and State taxes. Claim 4 deductions on the W-4 (Two for yourself and 1 for each child). You'll end up with practically nothing taken out, and what is taken out will be returned. You should also end up with a child credit (I won't figure that in my calcs - but expect a bonus upon filing). You will end up paying Social Security and Medicare (i.e. $1909 of the $25K annual projected income).

If your projections on expenses is accurate, the job will provide you $472/month excess income (presuming child support is maintained).

I can't tell you if it's worth your time. I don't know what alternatives you have. If it's no income vs this job, then it's worth it.

Answer 6

Do the W-4 worksheet. You can put down exempt from FIT. For a whole year working at the above stated amount you would owe less than $ 700 in tax and your CTC and EIC would pay this and still be giving you a refund of over $ 3,600 federal with nothing withheld.

Answer 7

About 20%

Answer 8

it depends on what state you live in (if they have a state tax) the federal income tax withholding chart is in a form on the irs web sight.....6.2% for SS and 1.45% for medicare...so a week at 40 hrs is 480 minus 29.76 for ss and 6.96 for medicare the depending on your withholding....and how often the job pays...you can caculate with the chart.
hope that helps......my best thought is to try to find something closer.....it won't be worth it.

Answer 9

i think u can get a tax reduction from the government for sure cuz u have so many children and dont have a husband i wish the best of luck for u happy mothers day by the way

Answer 10

Go here for some handy estimators: http://www.paycheckcity.com