Income tax percentages

[ReformedWretch]

Question...

Is there a way to figure out how much tax you are going to be charged in your federal income tax at your job before you start?

My wife and I have just obtained 2 new jobs and we hope to obtain a third within a few weeks. The first job would pay us only XXXXX per year each. Is there a way to know how much we will pay in taxes on that salary?

The second job will pay xxxxx per year every other week.
The third job will pay XXXXX per year.

So, if my wife and I each claim 1 dependant (ourselves) is there a way to know the percentage the federal government will tax those meager salaries? I am hoping we will actually clear about the same ammount of money that we have been because at our current salary, we are in a much, MUCH, higher tax bracket.

[Edited for way too much information -- don't put that kind of stuff on the internet!]

[Edited on 3/1/2005 by fredtgreco]

 

[fredtgreco]

Originally posted by houseparent
Question...

Is there a way to figure out how much tax you are going to be charged in your federal income tax at your job before you start?

My wife and I have just obtained 2 new jobs and we hope to obtain a third within a few weeks. The first job would pay us only XXXX per year each. Is there a way to know how much we will pay in taxes on that salary? Weekly it's about XXX dollars.

The second job will pay XXXXX per year or XXX per week every other week, which honestly is only XXX each in seperate checks.

The third job will pay a measly XXXXX per year or XXX per week.

So, if my wife and I each claim 1 dependant (ourselves) is there a way to know the percentage the federal government will tax those meager salaries? I am hoping we will actually clear about the same ammount of money that we have been because at our current salary, we are in a much, MUCH, higher tax bracket.

Adam,

You are not taxed "by the job." You are taxed based on total income. So you need to figure out what your total income might be, and then what you think your tax liabilty would be based on past years. If your deductions don't change much, that should not be that hard. For example, I was able to figure out roughly that my take home at my firm job was around 75% (after taxes, SS, etc.) So I could determine my budget.

Your withholding is your own decision. The "claiming of the dependents" is merely a guideline. For example, because the withholding based on dependents does not really figure in someone who gives 10% of his income to charity, I usually claimed between 9-12 dependents (solely for withholding purposes) and still received a several thousand dollar refund each year.


[Edited to XXX out the original numbers in the quote section]

[Edited on 3-1-2005 by Dan....]

 

[TimV]

Depending on State taxes, you probably will pay about 1500-2500 depending on deductions. When we do payroll taxes, we just call a girl who does them for 10 dollars or so.

If you really want to know, just call someone from the phone book or who advertises doing payrolls in the paper I can't imagine it costing more than a few dollars.

There are a zillion things that can make a difference, though. For instance 3 of my teenaged boys help me with my business, and you can pay each kid If I recall correctly 4800 dollars without taking any taxes out at all, so I can immediately make about 15 thousand per year that isn't taxed at all. We just keep it in their bank accounts for either college or family emergency. Then if you own a house, you write off the interest you pay, which is almost all of your mortgage.

With cars, you can write off the whole thing, or a portion of it if you have a hobby that you do which makes you money occasionally.

Since I'm self employed, I can make over twice what your numbers add up to and still not pay a dime in taxes other that SS, which runs me about 3 thousand per year (self employed people pay twice the amount of other people).

When you have kids, one of the few good things our current President has done is to raise the amount taken off your taxes for each kid (we've got 7).

You guys should all have some sort of hobby that you can make money from, even if it takes you a couple years to earn even modest amounts from it, if for no other reason that it will help you keep more of your own money.

 

[ReformedWretch]

I may have to see a tax specialist, this just makes my head spin and I really want to pay as little taxes as possible. At my current place of work we pay 30% and I owe another thousand or two each year!

 

[TimV]

As I said, it wont cost you much. You are not paying 30 percent, though, based on the numbers you posted, especially as you said they would be higher than you now pay. Federal income tax at your level is closer to 15%. When you add the roughly 7% SS, and probably 1 percent SDI and what ever else your particular state demands, I frankly doubt this figure, unless you are messing up on withholding.

What are the basic natures of these new jobs? Perhaps you can deduct gas and auto expenses.

 

[tcalbrecht]

Try this:

IRS Withholding Calculator

 

[Puritanhead]

The Lord giveth and the government taketh away.
From what the government hath not taken away, thy woman taketh away.
From what thy woman hath not taken away, thy kids taketh away.