How do summer analysts get taxed?
For example, if i were to have a salary of 100k salary prorata 9 weeks, how would the taxes be calculated on that?
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Made overtime this summer and each paycheck was taxed around 30-35%
I was on 120 and that's 10k per month or 5k per check. Take home was 3.333k per check, so that would be a 33% tax. It was federal, NYS, and NYC tax.
Did you get a tax refund later on or was 3333 what ended up being your tax.
Where did you work
In my case:
IRS doesn't know its an internship - to them you're making 110k a year so you'll get taxed like it. Then when tax day comes around they see you made much less than 110k and you'll get a pretty sizable tax refund in April (mine was about 4k).
Spot on
That's why people are always amazed that their large signing bonus gets taxed so high- The IRS assumes their signing bonus of $5K in one week means their annual income is ~$250K/yr, so they'll take like 40% of it. Then on tax day you wake up to a nice $$$ deposit
Exactly. Same case for EOY bonus.
Isn’t it way higher than 40% in nyc
How much did you originally get taxed pre refund?
I was on 100 pro rata and I took home 2,991 on the 1st and the 15th. No extra deductions or anything. Should give a good ballpark.
Did you get a tax refund later on or no?
You have replied to essentially every answer with this question or similar.
If you want to know how much you will owe in taxes use a simple online tax calculator. Input your summer pay as your pay for the entire year (so if you make $3k a week and work 10 weeks say $30k for the year). Use your correct city, state, and any withholdings. This will give you the amount you will owe at the end of the year. Then with your first paycheck add up how much city, state, federal taxes you are paying. The difference between that and what the calculator says is what your refund will be.
Take 65% of the gross paycheck and that should be it. You will get almost all of it back in the tax refund.
You’re actually supposed to give 100% of your comp to your MD
I made 42k before tax. How much will I get back?
I mad 34 before tax how much will I get baxk
There are a lot of threads on this as well as easy to follow online articles that can answer these questions. The key is that you need to understand the difference between withholdings and taxes. The amount that the company keeps from your paycheck and pays to the IRS on your behalf is the withholdings. It is essentially an estimate of what you owe in taxes based on the amount of the paycheck (this is why the % is very high for bonuses, because the system thinks you’re earning a lot more than you actually are). At the end of the year when you file your taxes, you calculate the actual amount that you owe. If your estimates (withholdings) throughout the year were too high, you are given a refund. If your estimates (withholdings) through the year were too low, you owe the IRS money.
No one here can answer whether or not you will get a refund because they don’t know your gross earnings, the amount of withholdings, and all the other required inputs to determine how much you owe in taxes. That said, usually the estimates (withholdings) are high and therefore you get a tax refund rather than owing more money.
If you can’t figure out basic taxes or take the time to google simple stuff like this, then maybe you aren’t cut out for a job in finance.
I mean seriously, people want to be paid >100k out of college but can’t figure out taxes =/= withholdings or how to do a simple google search? Feel like this question comes up multiple times per week, and I get the feeling the question askers might not be cut out for finance if it’s so complicated to them.
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