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Any income tax experts? Quick question.


Josh

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So I recently started a new job and I'm making a decent bit more than I used to, so I'm probably in a different bracket, but...wow.

 

Anyway, I did my W2s and set my 2 standard deductions properly, I think (I'm single, no dependents).

 

Got my first check in the mail yesterday and the amount taken by Uncle Sam is astounding. Is there an easy-to-read chart that will help me understand that I'm being "deducted" properly? All-in-all the withholdings were around, maybe a bit more than 40%. I mean, at this point, why even bother making more?

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Josh that is about what I get removed from my paycheck, it sucks so much.

 

Okay. I guess I was just surprised on this one since the original amount included a signing bonus with a nice big round number so the math stung a little bit more than usual.

 

When the before/after amounts result in a change in decimal placement it's somewhat depressing.

 

:furious

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If you had a big signing bonus included on your first check, your rate is going to be alot for that first check. Most payroll progams take an amount out based on what your total will be for the year, and it bases that on the amount your check is for that pay period. You should have asked for seperate checks, one for the bonus and one for your pay. You may have been taxed at a lessor rate on both, depending on the amount you make.

Example say your salary is based $1000wk. Your taxes would be taken out based on you making $52,000 a year. Now say you got a $5000 bonus in that one check. Your taxes are now going to be taken out based on you making $312,000 a year. ($6,000 * 52).

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If you had a big signing bonus included on your first check, your rate is going to be alot for that first check. Most payroll progams take an amount out based on what your total will be for the year, and it bases that on the amount your check is for that pay period. You should have asked for seperate checks, one for the bonus and one for your pay. You may have been taxed at a lessor rate on both, depending on the amount you make.

Example say your salary is based $1000wk. Your taxes would be taken out based on you making $52,000 a year. Now say you got a $5000 bonus in that one check. Your taxes are now going to be taken out based on you making $312,000 a year. ($6,000 * 52).

 

AAAAaahhhh. Now that makes a lot of sense. Well, it's too late to ask them to re-cut the check. I'll just get it back next year, I suppose.

 

Thanks, guys. I feel (somewhat) better.

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