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-   -   Am I paying too much in tax deductions? (http://www.jeepforum.com/forum/f7/am-i-paying-too-much-tax-deductions-1551167/)

Marconis 07-19-2013 08:06 PM

Am I paying too much in tax deductions?
 
So I started my first real big boy job back in June and I think I filled out my tax form wrong, since I'm getting slammed on my pay checks. I didn't have anyone to help me when I was going through processing since the lady didn't know diddly, but I guess I can't add numbers properly or read. I've gotten pay for 5 weeks of work and so far nearly 33% of my gross pay has gone to taxes (state, federal, city, Medicare, and something called FICA; $30 in union dues are factored in per paycheck as well). This, to me, seems absurd. My tax exemption under federal says "02"...should I not have it this high? Or does the higher number mean less is taken out? I'm single and have no children and rent an apartment.

Thanks for the schooling.

montero1 07-19-2013 08:49 PM

You need to be at 0, with maybe a bit extra taken out per week. Higher the #, less they deduct. If you have no dependents, and don't own property, you shouldn't claim 2 dependents.

Marconis 07-19-2013 09:18 PM

Well, I changed it to 00 after heeding your advice as well as my fathers. I can't deal with the thought of more money being taken out per week, but I guess that refund will be nice and I won't owe anything. Taxes, taxes, taxes...

Tom95YJ 07-19-2013 09:21 PM

Quote:

Originally Posted by Marconis
So I started my first real big boy job back in June and I think I filled out my tax form wrong, since I'm getting slammed on my pay checks. I didn't have anyone to help me when I was going through processing since the lady didn't know diddly, but I guess I can't add numbers properly or read. I've gotten pay for 5 weeks of work and so far nearly 33% of my gross pay has gone to taxes (state, federal, city, Medicare, and something called FICA; $30 in union dues are factored in per paycheck as well). This, to me, seems absurd. My tax exemption under federal says "02"...should I not have it this high? Or does the higher number mean less is taken out? I'm single and have no children and rent an apartment.

Thanks for the schooling.

Wait until you have a house, you'll have property taxes , and then kids. Between taxes and medical insurance it's 50% of my income

BeachinXJ 07-20-2013 05:27 AM

33% is low. Welcome to america where we support liberals.

nwiTJdave 07-20-2013 05:51 AM

Just wait till you move up a few tax brackets.

xj-jake 07-20-2013 08:14 AM

Quote:

Originally Posted by Marconis (Post 15697231)
Well, I changed it to 00 after heeding your advice as well as my fathers. I can't deal with the thought of more money being taken out per week, but I guess that refund will be nice and I won't owe anything. Taxes, taxes, taxes...

I am in your situation with not having any deductions(kids,house, etc). I work on base plus comission pay. 35-40% of my gross goes to taxes. Normally my hourly wages for two weeks pluse part of my comissions are all paid in tax. FYI I make around $40k a year...

Dngrs1 07-20-2013 11:46 AM

FICA is Social Security tax. Gotta support them old folks.
If your single, no dependents, don't hold your breath waiting for a refund. Somebody has to pay for all those refund checks for all those cute little low income dependents. :D
Try this; get a copy of this years state and federal tax tables. Figure out approximately what your gross income will be for this year. Subtract your standard deduction and personal exemption. Look up in the tax tables for this amount to find out what your tax will be. Make sure you have at least that amount withheld from your pay for the year. (Divide that amount by the number of paydays to know how much should come out of each check). The numbers are approximate because taxes change slightly year to year.

Hurley91 07-20-2013 01:02 PM

Quote:

Originally Posted by Marconis (Post 15697231)
Well, I changed it to 00 after heeding your advice as well as my fathers. I can't deal with the thought of more money being taken out per week, but I guess that refund will be nice and I won't owe anything. Taxes, taxes, taxes...

You should come to Canada.

Marconis 07-20-2013 01:30 PM

Thanks for the advice, all!

WhiteOut 07-23-2013 11:32 AM

Quote:

Originally Posted by Hurley91 (Post 15698667)
You should come to Canada.

Why would he do that? I'm at about 40% deductions right now:mad:

MountainMan864 07-23-2013 11:57 AM

Why care? Get more taken out and get a bigass check. I got almost 7k back last year.

Dngrs1 07-23-2013 12:12 PM

Quote:

Originally Posted by MountainMan864 (Post 15709413)
Why care? Get more taken out and get a bigass check. I got almost 7k back last year.

Interest free loan to the Gov't.:rolleyes:

Budke 07-23-2013 12:16 PM

Quote:

Originally Posted by Dngrs1 (Post 15698506)
FICA is Social Security tax. Gotta support them old folks.
If your single, no dependents, don't hold your breath waiting for a refund. Somebody has to pay for all those refund checks for all those cute little low income dependents. :D
Try this; get a copy of this years state and federal tax tables. Figure out approximately what your gross income will be for this year. Subtract your standard deduction and personal exemption. Look up in the tax tables for this amount to find out what your tax will be. Make sure you have at least that amount withheld from your pay for the year. (Divide that amount by the number of paydays to know how much should come out of each check). The numbers are approximate because taxes change slightly year to year.

I'm single and have no kids and have gotten a refund the past 3 years. First year I worked I had to pay $200 to them, after that it was like $100something to me(was still being claimed a dependent by my mom) and the next two years I got over 1k back.

WhiteOut 07-23-2013 12:40 PM

Quote:

Originally Posted by MountainMan864 (Post 15709413)
Why care? Get more taken out and get a bigass check. I got almost 7k back last year.

True, but I'd rather have the money now to either put into stocks (guaranteed 5% return) or into my retirement fund (bigger refund in Feb). This year with all the overpayment and my contribution to RRSPs I should see $10k. Which will go back into RRSP at tax time next year to get more of a refund.


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