i want to work at u.p.s. and it says that the hourly rate is 8.50-9.50 and after tax is taken out you make from 110-150 a week.
2007-05-23 16:15:18 · 7 answers · asked by mbz333 2 in Business & Finance ➔ Taxes ➔ United States
Here's how tax taken ot of your pay works:
A portion of your pay taken out to pay for 3 types of federal taxes:
- Social Security
- Medicare
- Federal Income Tax Witholding
The social security tax and welfare tax are mandatory so you won't be getting them back. However, your social security tax will earn points toward qualifying you for social security in the future.
As for the Federal Income Tax Witholding, you may be able to get some of those back when you file your tax return, depending on how much you make and what other sources of income you have.
Also, there may be state taxes. For example, in California, there is a state disability insurance tax and California state tax witholdings.
I recommend:
1) Taxes will be taken out of your pay. A portion which goes toward federal tax may be able to be returned to you come next April. You may also get state taxes returned.
2) I would also consider putting some of the money you make into a Roth IRA account at a stock brokerage like Charles Schwab. This is a retirement account, so if you take it out before you're 59.5 years old, you will have to pay additional taxes.
However, if you take it out after, all the gains you have in that account will not be taxed. This means if you are able to put in $1,000, and invest it in something that grows 8% a year, you would have over $33,000 by the time you're 60 years old.
Good luck!
Just Be!
2007-05-23 17:18:36 · answer #1 · answered by MBA Don 4 · 1⤊ 0⤋
Being 16 has nothing to do with whether you pay taxes - it depends on how much income you have. At that rate, you'd most likely owe some federal taxes for the year. State and local tax depend on where you live. They'll definitely take out for social security and medicare.
2007-05-24 03:17:50 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The 2 W2's go together in one return. Age makes no difference. She has to file. If you are claiming her as a deduction on your return, then she can't claim herself as a deduction on her return. Do the math. Even if she ends up owing IRS a few bucks, it's better for her to pay (actually, for you to pay for her) so you get the benefit of her on your return. That's what we did with our four kids when they were working after-school type jobs and we came out ahead.
2016-05-21 06:36:59 · answer #3 · answered by ? 3 · 0⤊ 0⤋
WELL THERE IS NOTHING YOU CAN DO ABOUT THE SOCIAL SECURITY AOR THE MEDICARE...NO WAY AROUND THOSE, HOWEVER I FYOU ARE ONLY GONGTO MAKE A COUPLE THOUSAND WHERE YOU AER NOT REQUIRED TO FILED INCOME TAX RETURN AND YOU ARE PROBABLE GOING TO BE CLAIMED AS A DEPENDANT ON YOUR PARENTS RETURN ANYWAY...YOU CAN CLAIM EXEMPT ON YOUR W-4 SO THAT THEY WIL NOT WITHHOLD ANYTHING FOR FEDERAL INCOME TAX.. SO FIGURE OUT WHAT YOU WILL BE MAKING FOR THE YEAR AN DIF IT IS UNDER LIKE 3300 THEN MARK EXEMPT THEN THEY WILL ONLY W/H THE 7.65% WHICH IS YOUR PORTION OF S/S & MEDICARE.
2007-05-23 16:59:09 · answer #4 · answered by kay 2 · 0⤊ 0⤋
Yes, you will pay taxes just like the rest of us. The government doesn't give you a break just because you are 16. Sorry.
2007-05-23 16:22:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yes...it is not so much your age, but how much you make. go to yahoo tax and look up the tables and see where you may be
2007-05-23 16:43:13 · answer #6 · answered by zioncanyon 3 · 0⤊ 0⤋
Yeah, they sure do.
The government hits the younger ones first. j/k
2007-05-23 16:31:45 · answer #7 · answered by Island*Chica 5 · 0⤊ 0⤋