Tax deductions on Salary?

Question

some serious confusion about the tax that i pay from my earnings. I work as a s/w devloper. Plz can you make some time and do some calculations as per the numbers that reflect my paystub. Below mentioned pay is for 2 weeks(15 day) period pay details.
SALARAY::: Gross $ 4160

TAXS & DEDUCTIONS:
FICA 318.24
FED WT 807.44
VA ST 216.69

TOTAL Deductions = 1342.37

Net pay is : $ 2817 ( 4160- 1342.37)
The pay roll is run by ADP. In W4 form filled by me, option A,B,E are checked by me.
As per deductions i see, that tax cut seems to be around 33%. Why is it much high.?
Plz can some one explain about the deductions and reason for why am i paying more tax than my frnds who are equal to my gross pay. I hear that , at the end of year when we claim taxes, federal Withholding would be crediting back some amount if it feels they owe me ..Also, during a complete Tax year, what would be the avg tax that i would be paying.. I keep hearing from others that on avg 23-25 % goes in tax. bit i pay now >33%

Answer 1

If you gross $4,160 in 2 weeks, your annual pay is 4160 X 26 paychecks = $108,160

Now, assume you are single, have no dependents, and take the standard deduction of $5,350. This reduces your gross income to $102,810. If you have other deductions - it would be even less, but you didn't provide that information in your question.

So, assuming taxable income of $102,810, your federal income tax would be $22,898.

Your VA State tax will be about $6,000.
Your FICA tax will be about $6,724.

This brings you a total tax bill of 35,622 or about 33%. Don't forget you pay taxes on real estate, gas, sales tax, etc. Your employer also pays payroll taxes and corporate income taxes. When everything is considered, you pay more than 50% of your income in taxes.

Answer 2

You got a whole series of very good answers to this question already. When I looked back, it seems you had additional questions.

The answer below is good for the calculations.
FICA is your share of social security and medicare tax.
FED WT is federal income tax withholding.
VA ST must be Virginia income tax withholding.

At the end of the year, you will file tax returns to calculate your federal and state income taxes. If your withholding is greater than the tax, you will get a refund. If your withholding is less than the tax, you will owe additional tax.

"others" can say what they want, but their circumstances may be different. They may have deductions such as mortgage interest, real estate tax, medical expenses, charitable contributions which reduce their taxable income, and therefore their tax. They may have children and therefore have exemptions, which reduce their taxable income, and therefore their tax. If their children are young enough, they can get tax credits, which directly reduce tax.

You can't use other people's taxes to estimate your own.

Answer 3

Those numbers are about right if you are claiming 3 withholding allowances.

Your taxes are so high because your income is over $108,000 per year, about triple the national average.

Answer 4

Hire Mukwonago as your CPA:>