I just recently got a new job making a good amount than I ever have before (not that that's saying much, but I'm happy ) My question is, do I need to fill out my federal/state forms out differently b/c of my hike in salary? Would I be considered in a new tax bracket therefore need to adjust my forms accordingly? I received my first biweekly paycheck today and realized they are taking out close to $540!!!!!!!! and thats not even including any benefits!!! I am currently claiming 1 for state and 1 for federal and just trying to reach a stable point where i get the most of each paycheck but not owe at the end of the year.


Basically my question is this, does $540 taken out in taxes sound correct for a biweekly paycheck? That seems like a lot to me.

 

not nearly enough information.....

you can probably find a quick website that you can dump your gross wages in, your exemptions (is it just you or do you have a wife and some kids?) along with if you are going to use the standard deduction or itemize (do you have a mortgage, etc.....)......

basically when you fill out a W4, "Single 0" means they will withhold the most $..... if you change it to "Single 1" they will withhold less.... single 2 they will withhold even less.... etc....."Married 5" is even less.....

There is just too much information needed to see if you are going to hopefully "break even" at the end of the year.

Goodluck....

 

At your current rate of $540 bi-weekly you will pay in $14,040 for the year. This puts you somewhere between $55,000 to $65,000 yearly income. Being self-employed I paid in $12,700 in estimated taxes and social security on a yearly income of $54,000. When I filed at the end of the year I had to pay an additional $3,400 in taxes for a grand total of $16,100 for the year. Talk to your accountant or a tax expert to see if you are paying enough in. It sounds like you are not paying enough. Paying a little more now is easier than coming up with a fairly large lump sum at the end of the year. If you do over pay its nice to get a refund to play with.
Sucks don't it.

 

[QUOTE=leahysailor,Jul 28 2006, 08:33 AM] At your current rate of $540 bi-weekly you will pay in $14,040 for the year.

 

spend the 5 minutes and do this......

http://www.irs.gov/individuals/page/0,,id=14806,00.html

 

I'll check it out. Thanks Scot.

 

I spent many years in college with die hard democrats that switched parties right after their first real paycheck.


Welcome to the working world.

 

I usually grab last years income tax form put it into excel and plug in my anticipated income for the year then make sure that I'm contributing enough to meet the tax. If not I adjust my w-4 to whatever I need to to come out even at the end of the year. There's a box for additional payment amount. I've got it down to a science now. Last year i owed $1200 I think. This year I should owe maybe $100 give or take.

 

No shit!!!!! I don't mind paying my fair share, but if you actually make some $ it starts to suck!

 

my first job and im already losing over $400 bi-weekly with no state income tax ...it sux but everyone has to do it...