I'm starting this thread because I want to see if anyone else experiences major tax deductions from their paycheck. I recently got a promotion, making $15.35 an hour. I worked 80 hrs @ $15.35= $1,228.00 And 10 hrs OT @ $23.06= $236.37 With a few bucks extra from promotional monies and such, my gross is $1,470.73 "Fed Tax" took out $166.06 "FICA" took out $91.19 "Medicare" took out $21.33 Total of $278.58 My federal taxable wages was $1441.32 Total tax deducted $278.58 Percentage taxed of taxable wages= 19.33% of my paycheck, basically. Does this sound awfully high to anyone else??????
Well my last paycheck was about $1800 with no overtime and I brought home only $1200 of that. If you're in Texas I believe I have a number of other deductions than you though.
what is your withholding status? Single w/ zero exemptions? Go to http://www.irs.gov/pub/irs-pdf/p15.pdf I think its page 44 and you can see what your wages/withholdings should be. FICA and Med is always going to be a combined 7.65% Hope that helps. (ps. also just be glad you don't have to withhold state and local as well)
Man the more you make, the more the government pounds you in the ass. I took home $900 less than my total wages last pay period.
What sucks about working for the engineering department is that they're only willing to hire you part time so you don't get any employment benefits.
That doesn't prevent you from opening up an IRA. Granted, you don't get an employee match, but depending on your income and the amount you contribute, you may get a tax credit from the government. http://www.irs.gov/taxtopics/tc610.html
Cool, I'll definitely look into this... Best time to save is to start early. I should get in the habit.
According to the Pub 15, for a single guy, 1 w/h allowance, semimonthly, grossing $1471, the tax should be $166.00 and the FICA/Medicare is 7.65%, which based on $1471, comes out to $112.53. Looks right on the money.
