IRS question?

Question

By the end of this year, my yearly salary would be about 60,000

I am 27 years of age and would like to know will I end up owing $ to IRS?
I am concerning because when I was 22, I had a lower income at about 22,000 and I remembered the govt said that I make too much money for my age.

Answer 1

If you have a gross income from wages of $60K you will have $8750 deduction and exemption (single filing status) making your taxable income $51,250 with $9,364 tax due. If your withholding is less than that at the end of the year you will owe.

Answer 2

If someone aged 63 made the same income as you and had the same filing and family situation as you and the same deductions and adjustments as you, then they would pay the same amount in taxes. It doesn't depend on your age, unless you are 65 or older in which case you get a small break on a standard deduction.

The government said you made too much money for your age? What part of the government? That makes no sense. They might have said that you made too much money for your parents to claim you as a dependent, which is a totally separate issue. But that you made too much money for your age doesn't make sense. Think about it - a child actor in starring roles makes a heck of a lot more than you did!

But back to your question, will you owe at tax time. Since you give no clue as to what you have withheld, there's no way for anyone to give you even a guess. You will figure your taxes and compare it to what you had withheld or paid in estimated payments - then if you paid in too much for the year, you'll get a refund; if you didn't pay enough, you'll owe.

If you make around $60K, are single, take the standard deduction, and don't have any dependents or adjustments, your total tax liability will be a little under $9400 if it was from a job and not from self-employment. If you pay in less than that, then you'll owe. If the $60K was from self-employment, you'd owe another $9000 or so for self-employment taxes.

Answer 3

If you die not change your W-4, the amount withheld automatically increases as your income increases. The only real way to determine if your withholding will cover your taxes is to complete a tax return using the best estimate of your actual numbers. The second best method is to use the withholding calculator on the IRS website.

Note: The government NEVER tells anyone they make too much for their age. As long as you pay your taxes, they could not care less what your age is. They MAY have said you make more than normal for your age, but $22,000 is only about half the median household income in the US.

Answer 4

Here is a link to the irs web site. Showing the calculation. Remember you would have a standard deduction (7,800 I think if your single) so your taxable income would be 60,000 less that. http://www.irs.gov/formspubs/article/0,,id=164272,00.html