I’m 19, I’m about to look for a job, this is real basic- how much do they take out of for social and taxes again?
The Social Security tax is 7.65%, IIRC.
I get about 26% taken out of my paycheck, between Social Security, Federal and NY State Taxes. It depends too on your exemptions. I claim 0 so that they’ll take the biggest amount out (and I still ended up owing, but not much).
What kind of job are you looking for, a full or part time? The percentage they take will depend on the amount you earn.
A rule of thumb I’ve always used is that you’ll lose about 20-25% of your paycheck.
Tax to move to General Questions? Two million dollahs!
- SkipMagic (Who’s not sure he should accept a personal check for this one.)
Yeah, I know, but I thought it was so basic a question I didn’t wanna ask it in GQ
huh that’s funny
I’m looking for part time minimum wage work. I’m trying to get a job and keep it during the school year too.
IANA Accountant, or anything along those lines, but I was under the impression that a full time student could usually claim an exemption on taxes?
In that case, wouldn’t federal income tax be zero or negligible?
If you’ll be earning less than the standard deduction and the personal exemption (about $12,000), You won’t be paying any federal income tax, and you can indicate that on your W-4 form – they won’t deduct federal tax, then. They’ll still need to withhold for state tax, Medicare, Social Security, etc., but you’ll get to keep more of each paycheck (at the cost of a smaller tax refund, but that’s really a good thing).
You will see deductions for FICA on your pay stub. FICA stands for Federal Insurance Contibutions Act. FICA taxes include two types (1) retirement, disability, and survivorship (i.e., Social Security); (2) medical (i.e., Medicare).
The amount withheld from each employee’s pay for Social Security tax is 6.2% of the first $87,000 the employee earns in the calendar year. The Medicare tax is 1.45% of all amounts the employee earns (no maximum limit).
Does it matter if you can be claimed on your parents’ tax forms as a dependent? I had part-time work from high school and through college, and I was a dependent. I could’ve sworn that I was paying federal taxes those years.
Federal/state and local tax total close to 40% of my paycheck. Not quite, but close. Somewhere between 37 and 40%. (I did very rough estimates and came up with 39.7%. But the estimates were with very rough numbers, so I am allowing a lot of room for error.)
Yes. If he is a full time student under the age of 24, his parents are still entitled to claim his exemption (unless he’s married).
The standard deduction for single for 2005 is $5,000. If he’s going to make less than this, he can - but doesn’t have to - check the exempt box on his W-4. Then they should only withhold FICA and Medicare (7.65%).
If he makes more than $5,000, he’ll pay 10% federal on the first $6,000 of taxable income - 15% after that (unless he hits the lottery and gets into a higher marginal bracket).
No they can’t. They just usually do not make enough to owe any federal and state taxes at the end of the year. If you know you won’t be making very much you can fill out your w4 form so that very little is taken out.
Federal, State and FICA eat about 31% of my paycheck. It’d be more, but the health/dental insurance, 401k and train tickets come out pre-tax, so my taxable pay is reduced.
Keep in mind that if you take a job that relies on tips, like waiting tables, the company will estimate your tip income and withhold taxes from your wages based on the total of wages and estimated tips. So it could be that your actual paycheck from them could be about 34 cents.
Not exactly true. There’s a tuition tax credit that can be applied (although, I don’t think you can if you’re listed as a dependent on someone else’s form). Basically, you can get a tax credit for a certain percentage of your taxes, up to either $1-2,000. Or something like that.
I am not a tax professional.