any tax or math people here?

[ironsniper1]

so this past week i worked in new johnsonville staying in a dive of a motel and i worked a total of 24 hours over the course of 4 days, totaling $360 before taxes, now after taxes it comes to $293.39, now i dont know if the website i plugged this into is right or not but the one i tried says this

 

 

Federal Withholding

$39.07

Social Security

$22.32

Medicare

$5.22

why is so much being taking out if that is correct that seems like alot more than when i worked at krogers! hopefully someone here can chime in and tell me this is right and the gov and their taxes are idiots

[Oh Shoot]

Most tax algorithms give the % results based on that rate of pay for an entire year, 251 8 hour workdays I believe. Even at a steady job, if you work overtime one week, the % will be higher out that one check, as if that were your year round salary and you were in a higher tax bracket, even though you are actually not once you figure your entire year's wages.

 

IOW, obviously if you don't actually make that much per day, you will be in a lower tax bracket when actual income is figured.

 

BTW, that's about 11% income tax rate, which is probably in ballpark as you'd be in 15% tax bracket filing singly at $15/hour x 2008 hours, after you figure standard deduction of about $4K for one or a bit more for two, whatever.

 

- OS

Edited December 19, 2013 by Oh Shoot

[gregintenn]

It's a computer generated guess. It all works out right on April 15.

[peejman]

What OS said.  They're just guessing at the amount of your deductions. 

 

I've often wondered why a person with a fixed income who takes the standard deductions has to file a return at all?  Why can't they deduct exactly the correct amount?  I guess that'd just be too efficient...

[greenego]

so this past week i worked in new johnsonville staying in a dive of a motel and i worked a total of 24 hours over the course of 4 days, totaling $360 before taxes, now after taxes it comes to $293.39, now i dont know if the website i plugged this into is right or not but the one i tried says this

 

why is so much being taking out if that is correct that seems like alot more than when i worked at krogers! hopefully someone here can chime in and tell me this is right and the gov and their taxes are idiots

Medicare and social security taxes are fixed. Medicare is 0.0145 x wages and social security is 0.062 x wages. Federal withholding is based on what you put on the w4 for withholdings. With single 0 dependents employer will withhold more than if you put married with a couple of dependents. If you know what you put on the W4 you can go to IRS web site and look at Publication 15

Edited December 19, 2013 by greenego

[ironsniper1]

This is not for a w2 I was trying to figure out how much was taken out of a pay check I just got

[Guest Lester Weevils]

This is not for a w2 I was trying to figure out how much was taken out of a pay check I just got

The numbers you posted seem to add up, and they seem "in the ballpark".

Social security + medicare is 7.65 percent, and if you are self-employed it is double that amount. Your employer is paying another 7.65 percent "out of the kindness of his heart". :) If you work for yourself you have to pay both halves.

Multiplying 360 * 0.0145 = 5.22 which they withheld.
Multiplying 360 * 0.062 = 22.32 which they withheld.

39.07 * 100 / 360 = 10.85 percent income tax rate, which is probably in the ballpark, but you might get some of that back after you file your tax return. Or you might owe more at the end of the year, just depending.

If you subtract the income tax, SS and Medicare from 360, you get 293.39. As you work hard and prosper and make more money, uncle sugar will take even more and more. You ain't seen nothin yet. .)

Just add in the approx 10 percent sales tax, gas tax, property tax (you pay the property tax whether you own or rent), vehicle tax, telcom taxes, alcohol, tobacco and ammo taxes if they apply, etc, then you have done yer share as a responsible citizen in financing the gubment of the USA!

edit-- Except Romney thinks you are a slacker because you don't pay enough income tax. :) Edited December 19, 2013 by Lester Weevils

[Jonnin]

the more you make, the more they take.

 

SS and medicare are fixed, I think --- those are probably correct.   Or maybe SS varies off income as well, I forget, I am not a tax expert. 

 

Fed value could be dead on, close, or totally wrong depending on your total yearly income come tax day.  If you make 500K a year, it could be way LOW.  If you make 5k a year, it could be way HIGH.   Not enough input to say without your personal info (do not post that, I am just saying).

 

Now imagine you had a state income tax too!

Edited December 19, 2013 by Jonnin

[Guest Lester Weevils]

If you happen to make "a little more than most folks make" then you get to skate on paying any more ss tax. The cap goes up every year, but its always too high for me to get a break. :)

However, there is no cap on the medicare tax. The po millionaires have to pay the medicare regardless. Or maybe they have a way of skating on medicare on cap gains income, dunno.