Worried about how much I owe in taxes after summer gig
Guys, I interned at a BB last summer and just received my W2 from my employer. I hadn't looked at the numbers too closely before, but now I am really worried- it seems like wayyyy too little money was with held from me.
I received gross pay of $21,542. This included relocation bonus, regular pay and $6,152 of overtime pay.
$3,338 in federal taxes and $1248 in NY state taxes were withheld for a total of $4,586.
So I have only paid $4,586 on $21,542 of gross income so far (21.2%)? Wtf is going on? Did my firm omit taxing my $6,152 of overtime pay or something? Will I have to pay big money when I file my taxes.
One thing is that I am exempt from Medicare and Social Security taxes (and so those taxes were not withheld from my pay nor do I owe them).
thanks obama
Anyone? Please?
The tax rate for most interns would be close to 40-45% inclusive of federal, state and FICA taxes, right? Since I don't pay FICA taxes (which is what like 10%?), I should still have a tax liability in the range of 30-35%? Or is that too much?
Considering you only had $21k in gross income, the tax bracket you fall in is only 15% (also note that including the standard deduction and personal exemption that's another 9-10k off of your gross income that's taxable). Your effective tax rate is probably closer to 12% for the feds, and just skimming the New York state income tax, you're probably looking at another 5-6% for the state. So just looking at the numbers you're probably close to what you actually owe (again note, the amount of taxes taken out of your pay =/= the amount of tax you may owe, it's only withholding for your expected liability). I'm guessing if you're exempt from FICA that you're not a US citizen, and you might be use to higher taxes in your native country, but your numbers don't give me any cause for concern.
Edit: I should also point out that I'm assuming the 21k is the only taxable income you had for the year. If not, then it's hard to tell if you've had enough withheld just based on that one W-2.
My situation is similar. About the same level of pay, but had a little under 1k more in federal taxes. So far I'm looking at a 2.3k refund. How about you?
I'm also looking at 2.3k.
Seems a little low compared to what I heard others who worked with me are getting. They're quoting 3.5-4.5k
Tax refunds are very much dependent on each person's circumstances. There's no real way to do a straight comparison without looking at all the numbers, even if your situations may be similar.
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