I recently started a new job in Iowa. I am a single person only claiming myself. I am supposed to be paid every week but my first 2 weeks were on a combined check. Gross income 1320 and net income was 919. This seems like too high of tax being taken out. what do you think?
2007-11-30 00:22:18 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Look at the stub of your paycheck. It should indicate the pay period and what deductions were made from your wages. It will list the amount of Fed and State income tax withheld, Social Security tax (FICA), Medicare tax. If you work for a public employer, there may be public retirement fund (IPERS)deductions. If you participate in another type of retirement program (such as 401k or 403b) these contributions will also be deducted from your wages. If you pay any portion of any insurance benefits provided by your employer, these costs will be deducted as well.
As other answerers have indicated, if claiming only yourself as a deduction means that you get big refunds at income tax time, you should revisit your W-4 and increase the number of deductions that you claim. No need letting the government sit on your money (and paying you no interest) for months before returning it to you in the form of a tax refund. While many think it's great when they receive a refund with their tax return, it's a lousy way to "save" money and it was really your money all along.
2007-12-02 00:36:29 · answer #1 · answered by Kraftee 7 · 0⤊ 0⤋
They would have taken out a lot more tax than usual because of the two weeks being combined. The way the withholding tables work, they assume that you're making that much every week, so if it was really for 2 weeks. the withholding would have been very high. They'd probably have taken out over $220 for federal withholding where in a normal week it will be more like $80. Social security and medicare is a flat percent, so they probably took a little over $100 there, and it will normally be a little over $50. State and possible local taxes probably made up the rest - you don't say where you live, so those might have been inflated also because of the check being two weeks.
If they took out extra because of the two week check, you'll get the extra back as a refund when you file your tax return.
2007-11-30 01:00:40 · answer #2 · answered by Judy 7 · 3⤊ 0⤋
You can actually adjust how much tax is being withheld from your paycheck.
When you started your job, they should have asked you to fill out a W-4. This form goes down a list asking you to write 1 for yourself, write 1 for each dependent, etc. and add them all up. The total number helps them determine how much tax they should withhold from your paycheck. A lower number means they'll withhold more, and a higher number means they'll withold less.
I'd suggest you just leave it alone for now. Then when you file your 2007 taxes, see how close it comes out. If you get a huge refund, then you overpaid your taxes and you can tell someone at work you'd like to revise your W-4. Try using the "Deductions and Adjustments" table to get a more accurate withholding.
Remember, a big tax refund is not a good thing! It means you've overpaid your taxes all year, and the IRS is holding on to money that should be yours, without paying you any interest!
2007-11-30 01:38:11 · answer #3 · answered by Stacia Z 3 · 1⤊ 0⤋
You can verify your paycheck at:
www.paycheckcity.com
2007-11-30 00:50:56 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋