How much is being deducted from my payslip?

Question

Hey, I am a 20 year old dude, who still lives with my mom, OK, stop it!!! and I have just gotten a job, no seriously stop mocking me!! I want to make progress and I need to find out how much taxes I pay if have no children or responsibilities like bills and no credit at all. This is to do with the greater USA area. And does no credit really mean bad credit???

Answer 1

If you are a full-time student for 5 or more months your mother can still claim you as a dependent. In that case, you'll start to incur Federal income tax liability once your income exceeds $5,350. If you are not a full-time student then your mother cannot claim you as a dependent and you won't incur Federal income tax liability until your income exceeds $8,750. These are the numbers for 2007. They will go up a bit for 2008.

If your state levies an income tax you'll be subject to that as well. Each state has its own rules on when the tax kicks in so without knowing your state it's not possible to say what that will be.

The first $97,500 in wages are subject to Social Security tax at 6.2%. All wages are subject to Medicare tax at 1.45%

You can estimate your take-home pay here: http://www.paycheckcity.com

No credit history means just that. No history. It does NOT mean bad credit, though. Everyone has to start sometime and starts out with no credit. The younger you are when you first establish credit the easier it will be having no credit history. I held off until I was 27 before I first started using credit and had a very difficult time getting started. My youngest brother started at age 18 and had no trouble at all. Get a low limit credit card from your bank or credit union. Pay the bills on time and start building a clean credit record.

Answer 2

May be, your filing status is dependent, and your mom will claim you as dependent on her tax return. This means you will not get personal exemption of $3,400.

For 2007, on your job income up to $5,350 you will have no federal tax. Your net income of $7,825 (over $5,350) will be taxed at 10%. You employer will also withhold social security tax at 6.2% and medicare tax at 1.45%.

If your employer is deducting federal and state income tax, then you should file your tax return before April 15, 2008. Make sure that both you and your mom don't claim your personal exemption.