I'm a 26 y/o single student, Florida resident. Of the $3,000 I get per pay period for my summer job, I am only receiving $2211 after federal income, social security and medicare. My total for the summer and only income for the year will be $15,000 before taxes. Can I expect to get any $ back after I file taxes and if so how much?
I am far from a tax expert.
But this is what I would guess since no one else has tried. I'd like to know the real answer since I never do my taxes. I let Turbo taxes do the calculations.
You will have to pay in social security and medicare. There goes 6.2% and 1.45% repectively.
So $15000 x .0765 = $1147.50 goes toward SS and Medicare.
I did a quick search for 2007 income tax brackets and got this. Now I don't know if you are taxed on total on your total earnings or total earnings less ss and medicare.
http://www.irs.gov/formspubs/article/0,,id=164272,00.html
Anyway you will be taxed another $782.50 for the first part and then be at the 15% rate after that.
So assuming you are taxed on your total amount (not after ss and medicare are taken out, you will be taxed another (15000 - 7850) x .15% = $1072.50
So my guess is your total take home will be
$15000 - 1147.50 - 782.50 - 1072.50 = 11997.50
I forgot to note that I assume you are in a state with no income tax.
Sure you'll get a refund, brother.
Spend it on wild women and beer. Good times!
what is a period, 2 weeks? the whole summer?
the period is 2 weeks, I am working for a total of 10 weeks
dang thats pretty good for summer work, what do you do?
law....it's tough saving up for the school year when you get hit so hard with taxes
Because you're earning 3,000 every two week period, the IRS is witholding from your paycheck under the assumption that you'll be earning 3,000 x 26 periods = 78,000 for the year. Because of that, they're assuming you're in a much higher tax bracket than you in fact will be. When you factor in your standard deduction and your personal exemption, you should owe very little tax at the end of the year, giving you a good sized refund. If you're a student, don't forget to look into what credits you would qualify for, like the Lifetime Learning Credit, etc..
15,000 - 5,350 standard ded - 3,400 personal exempt = 6,250 taxable income.
6,250 * 10% = 625
625 - credits (Lifetime Learning, etc..) means very little federal tax due.
Thanks for the info on the Lifetime Learning Credit! That is good to know...
ah damn I forgot to use adjusted gross income.
Does he pay ss and medicare regardless of federal income bracket?
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