Federal income tax...screwy?

Discussion in 'Random Ramblings' started by EweSheep, Dec 1, 2010.

  1. EweSheep

    EweSheep Flock Mistress

    21,917
    73
    418
    Jan 12, 2007
    Land of Lincoln
    Hubby worked with company since May of this year and got on permanent status Sept 27th.

    As I was looking at the check stubs,YTD since Sept 27th, something is screwy.......

    Hubby claimed three dependents......Fed income would be less than $60.00
    Federal Medicare........less than $74.00
    Fed SS......less than 17.00
    IL state tax......$8.03
    PPO medical......62.35 for three people
    Dental.......7.57 for three people



    I sure hope we do not have to pay the federal tax back....we have been getting refunds this year and this is the first time I've ever saw this LOW.......is it because we elected to have medical coverage?

    Has anyone got stubs like this.......it is usually Federal taxes, SS, Medicare is higher or was higher.

    I just don't understand this at all............. [​IMG]
     
  2. PineappleMama

    PineappleMama Chillin' With My Peeps

    There was that credit thing that added a bit to checks... when does that stop?

    Could that maybe have some impact??

    DH's haven't changed at all... that I know of... but that's just looking at the take home amount.

    Maybe I should look closer.
     
  3. Tala

    Tala Flock Mistress

    There was that credit thing that added a bit to checks... when does that stop?

    Last year they took out so little that we changed our exemptions to 0 this year.....just so as to ensure we don't have to pay!!!!! [​IMG]
    Would be nice if it worked like it should, but they are always screwing around with it I just can't afford to have a bill.

    plus, my employer screws up our paychecks at least every other pay period. Actually, the last two in a row have been effed up [​IMG] sometimes I wonder if it's even worth working there anymore.....​
     
  4. booker81

    booker81 Redneck Tech Girl

    1,929
    35
    183
    Apr 18, 2010
    Mid-MI
    The fed amounts were changed due to the "Making Work Pay" tax credit.

    Go to the withholding charts here:

    http://www.irs.gov/pub/irs-pdf/p15.pdf

    Page 41 starts it, just look at the top for "Married Persons - (Weekly/Biweekly/SemiMonthly/Monthly etc)

    Look for the correct column and line - you want the taxable amount of his check - whatever is minus the 401k, HSA, etc stuff. Look for the right line for that amount, then the right column for the number of exemptions you claim.

    So for a make up check:

    Married. Weekly pay.

    Taxable amount is $945.55

    Exemptions : 3

    Federal Tax Withheld should be : $60


    If you look through the charts, you'll see a LOT of zeros. I'm biweekly, married, 3, and don't pay a dime to federal tax until I hit $960 a week. Before my promotion, I skated just under that line by taking 401k deductions, HSA and FSA. My taxable was something like $950 biweekly.

    It's a VERY VERY VERY good idea to keep a copy of the withholding tables around AND CHECK YOU STUBS regularly! It's not hard - just find your line, and make sure the number matches!


    As for annual tax time, your true number of exemptions determines how much you should have paid for taxes through the year. The Making Work Pay deal covers this as well. If you are taking more exemptions than you should, you will have to pay money back. If you are taking less than you should, you will get a refund from the free loan you gave the feds. If you take the right amount, it should be pocket change on who owes who.
     
  5. EweSheep

    EweSheep Flock Mistress

    21,917
    73
    418
    Jan 12, 2007
    Land of Lincoln
    No wonder it is so low........this was the first for me to see that low. They usually take out alot more taxes.

    Being $9.00 an hour on 40 hour workweek isnt bad, but with the overtime that hubby makes, roughly 50 to 60 hours a week for six days sure does add up. This weeks paycheck, there was NO federal withholding on this weekly pay....that is why I was perplexed by the amount given and thought I woudl have a heart attack if we have to PAY it back when we file our income tax coming February. We always had refunds. Last year it was a little less than the previous year befor that one.

    I would love to know how much we will have back since he had a temp service and another job this year........they were under the old tax amounts.
     
  6. sheila3935

    sheila3935 Chillin' With My Peeps

    2,828
    20
    181
    Jul 10, 2010
    Stonington, illinois
    With earned income for your child you probably wont have to pay. It is just me and DH as all of our kids are grown, so I file 0 exemptions and married but at single rate. That way I make sure I dont have to pay and get a little bit of a refund back. It means less on weekly pay but that little bit extra I dont have so I dont miss. My SIL first year she moved back here from Alabama was claming her and her son as he is disable and was living with her, he has polycystic kidney disease and she had to pay like 360.00 I told her never to claim all dependents unless you are very low income or you will be stuck paying or unless you have a child under 18 that you can claim for earned income. I think you will probably be ok so long as you qualify for the earned income just wont get back that much of a refund. If you have all check stubs from previous employers and present you can do an preliminary tax to figure out if you have to pay. PM me and I will let you know how to do that.
     
  7. debilorrah

    debilorrah The Great Guru of Yap Premium Member

    Does the medical and dental premium come out pre=tax? Because that lowers your tax liability quite a bit.
     
  8. EweSheep

    EweSheep Flock Mistress

    21,917
    73
    418
    Jan 12, 2007
    Land of Lincoln
    Quote:It didn't say in the brochure if it is pre tax....and we still haven't gotten the BC/BS booklet in the mail yet......
     
  9. debilorrah

    debilorrah The Great Guru of Yap Premium Member

    Quote:It didn't say in the brochure if it is pre tax....and we still haven't gotten the BC/BS booklet in the mail yet......

    Look at you DH's paystub. Where the medical and dental is taken out there may be a note next to it. Sec 125, or FSA, or Pretx...
     
  10. EweSheep

    EweSheep Flock Mistress

    21,917
    73
    418
    Jan 12, 2007
    Land of Lincoln
    All it said PPO MEDICAL......62.35
    DENTAL..........7.57

    Once a week they will take that amount out of his paycheck.
     

BackYard Chickens is proudly sponsored by