He is now duducting about 12% and I have to dependents but my wife also works here and she is not putting any dependents and they deduct 12% off her check also. So what would be the point of me having 2 dependents. I have a feeling that they are doing something shady. Can you guys please help?
2007-08-20 02:47:59 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
First of all, I don't know why you think they are doing something shady. They don't keep the money they deduct, they forward it to the government, so even if they were deducting too much, you'd get the extra back as a refund.
Do you and your wife make about the same amount of money? The more you make, the more your tax liability is, so if you make more, it could well be that even with the dependents, they still would take out as much as they do from your wife's paycheck. And you'd both be paying 7.65% for social security and medicare - that doen't change with dependents - and that sounds like it's most of what is being deducted.
Go to paycheckcity.com and enter your data (then also do the same for your wife's check, but separately from yours) to see what they should take out - you don't give anywhere near enough info in your question for anyone to give you an estimate here.
2007-08-20 03:00:14 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Well it is all based on the W4 that was filled out. If both of you checked married and 2 then the taxes would be similar. You didn't state income and also what you mean my deducitons, federal, state, fica, medicare? Hard to say but the 12% is pretty low if it includes anything other than federal. The fact that your spouse works there or anywhere has nothing to do with deductions on how you filled out your W4.
2007-08-20 10:46:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
This depends entirely on your income and your wife's income, which you don't provide. Your employer isn't supposed to take into account spouses working for the same company, so they won't be combining your salaries to figure out the withholding. You need to make adjustments for that, if necessary.
12% withholding sounds pretty small to me, especially considering that Social Security and Medicare combined adds up to aound 6.4%, and that's before adding in Federal and State tax (if applicable in your state). So you may only be having the minimum withheld. You should review your projected tax liability and see if withholding needs to be adjusted.
2007-08-20 09:57:05 · answer #3 · answered by Charles E 3 · 0⤊ 0⤋
A good rule of thumb would be 15%. It also depends on gross wages. Social Security is approximately 6.2% of your gross, and Medicare is 1.45% of your gross. Taking out for 2 dependents means that you get more on your check and less when you file your tax return.
2007-08-20 09:57:47 · answer #4 · answered by Tammi B 3 · 0⤊ 0⤋
Less then when you were single.
2007-08-21 22:15:11 · answer #5 · answered by Jovesash 4 · 0⤊ 0⤋