Non running question......Tax question

I hope you are a troll. How do you know you had more federal taxes withheld? Is your W-2 wrong? Are you confusing SS, Medicare, State Taxes, etc. as fed income taxes?

Just use an online tax program like turbotax and calculate your info.

I finished mine in like 30 minutes even with stock income, dividends, interest, house, etc...

first year in the real world wrote:

This is my first year with a real job, I just got my W-2 and it says Federal Income Tax withheld was a little over 5,000. I know I paid a lot more than this in federal income tax, so what does this mean. Also, does anyone know from experience how much I will get back on my return. Thanks for any info.

with our complicated bullshit tax policies created by a bunch of dumbshit lawyers on capital hill we need much more info to answer that question. Gross income, deductions, filing status, dividends, interest, etc.

you never had any job before? its the same thing just more money.

If it says withheld - thats what was taken out of your check and put towards your total. if you owe more you pay more if not the government gives you back your money which it used with out paying you interest.

I am single, I rent, and my gross income was 42k

You may have paid more in FICA - social security and medicare and be confusing that as federal tax.

You pay 6.2% of your gross pay to FICA (SSA) and 1.45% of pay to Medicare. In Michigan we pay about 4.2% of gross for the MI Income Tax. So that is about 12% for taxes OTHER than Federal.

Did you not ever take a personal finance course or Econimics in high school? They go over these things ad infinitum. Also, how is it that the first job you ever got where you were at all interested in how much they keep from you is for $42,000?

Let me guess, you never had a real job all the way through college and grad school?

The only other job I have EVER had besides my non-pay internship was at a running shop for the summer before my senior year of college. My dad did my taxes and sent me a check for $450 which is what he said they gave me back. If u think that $42k is a large starting salary, you will really hate me next year, I should be well over 50k. I do not consider that to be a lot of money and I am surprised anyone else does. I struggle to get by with my Rent...$900....bills....and BMW pmt...$645 and going out every weekend. AFter that, I don't have much money at all. I am looking forward to getting my taxes back so I can pay for my trip to Italy that I charged on my credit card.

If you're making payments on a BMW, going out every weekend, and waiting on a tax refund to pay off your vacation, you're not struggling. You're just a spendthrift.

darkness wrote:

You pay 6.2% of your gross pay to FICA (SSA) and 1.45% of pay to Medicare. In Michigan we pay about 4.2% of gross for the MI Income Tax. So that is about 12% for taxes OTHER than Federal.

Did you not ever take a personal finance course or Econimics in high school? They go over these things ad infinitum. Also, how is it that the first job you ever got where you were at all interested in how much they keep from you is for $42,000?

Let me guess, you never had a real job all the way through college and grad school?

i think you pay 12.x% social securitey and 2.9% medicare, the cap you pay out ss is 94,200 which obviously who have not met.

rent 900, bmw 645, where do you live, take a hard look at your expenses!

You are living way out of your means. You can't afford that BMW. You need to be smart and start saving now. I hope you are putting money away in 401k or Roth IRA.

CPA wrote:

You are living way out of your means. You can't afford that BMW. You need to be smart and start saving now. I hope you are putting money away in 401k or Roth IRA.

don't be silly. isn't it obvious that mommy and daddy will take care of him?

The only thing mommy and daddy have bought me since I graduated was christmas presents. I think I may have gotten 3 pair of diesel jeans, a few shirts, and Ali G season 1 and 2. Other than that, I am on my own.

don't be silly. isn't it obvious that mommy and daddy will take care of him?

Relax, dude. Just because you're not from a privileged background doesn't mean you need to be an asshole to people who are.

first year in the real world wrote:

Rent...$900....bills....and BMW pmt...$645 and going out every weekend. AFter that, I don't have much money at all. I am looking forward to getting my taxes back so I can pay for my trip to Italy that I charged on my credit card.

Based on this info, I believe that you are a troll.

$5,000 in withholding seems a little high. You should check how many deductions you listed on your W9.

There are websites that can assist you in adjusting the amount.

Depending on where you live, $900 in rent could probably be the mortgage on a home. Buy. The market is a buyer's market now.

first year in the real world wrote:

The only other job I have EVER had besides my non-pay internship was at a running shop for the summer before my senior year of college. My dad did my taxes and sent me a check for $450 which is what he said they gave me back. If u think that $42k is a large starting salary, you will really hate me next year, I should be well over 50k. I do not consider that to be a lot of money and I am surprised anyone else does. I struggle to get by with my Rent...$900....bills....and BMW pmt...$645 and going out every weekend. AFter that, I don't have much money at all. I am looking forward to getting my taxes back so I can pay for my trip to Italy that I charged on my credit card.

I've got to echo what everyone else has said. If you are having money problems now, THEY WILL NOT GET ANY EASIER WHEN YOU MAKE MORE MONEY. Get control of your finances. If you are having problems with $42k a year (which should be quite a bit for a new graduate), you are going to have serious problems down the road. There is no reason to have a car payment which almost equals your rent payment. If you have to charge a trip to a credit card (at 19% interest), you cannot afford to take the trip. When you make more money, chances are that you are only going to spend more. DO NOT let this happen to you.

Have you done your taxes yet? If you only withheld $5k, you aren't going to get that much back. You don't own a house, so you aren't able to deduct many expenses. You will likely be able to take the standard deduction, and you will maybe get back $750. I doubt this will pay for your trip to Italy.

For your own financial security, read some books before you go crazy with spending. Millionaire Next Door should be an eye-opener. If not, then thank you for being a renter and a consumer and putting money in my pocket.

Good point. We put 20% down on our condo, and our Mortage is $850.60 per month. plus I am giving an extra $75 a month toward the principal which will cut over 12 years off the mortage. Paying rent= throwing your $ away. Buy something!

Track Fan wrote:

Good point. We put 20% down on our condo, and our Mortage is $850.60 per month. plus I am giving an extra $75 a month toward the principal which will cut over 12 years off the mortage. Paying rent= throwing your $ away. Buy something!

You shouldn't be retiring your housing debt early unless you are paying well over 6% in interest. In effect, your TRUE cost of borrowing on your house is a tad over 4%, given the mortgage interest deduction, and you should be able to earn WELL OVER 4% investing in other assets over the next 30 years. Otherwise, you are simply giving yourself a slightly over 4% return year after year. Your house is the one asset that you WANT to leverage to the hilt.