How much of my paid taxes will I get back?

[jagec]

Originally posted by: Turin39789

Originally posted by: jagec
considering we have no idea how much money you're making, it's hard to say whether or not you'll get any back.

Ballpark - $7500 in taxes divided by 25% rate = 30,000 divided by about 9/12'ths(.75) through the year = 40,000 annual salary

Did he start work on January 1?😉

Originally posted by: Xavier434

Originally posted by: Deeko
Why are you claiming 0? If you're independant from your parents, which since you say this is a normal, full time job, I'll assume you are, shouldn't you be claiming 1?

Also, if you just graduated college, any tuition money that you paid this year is eligible for a tax break. There are other things you can itemize too, such as student loan interest.

I did a rough estimate in TaxCut based on estimated end of year income, and my tuition expenses paid, and I should be getting about $3000 back. This is also my first year working full time.

I still claim 0 because I like getting more back at the end of the year which is usually the result for people with simple taxes.

Tell you what, if you mail me $1000 every month, I'll mail you $12000 in April. Deal?

 

[alkemyst]

Originally posted by: jagec
Tell you what, if you mail me $1000 every month, I'll mail you $12000 in April. Deal?

Most people aren't getting back $12k though. For most the worry of the 'man' holding their interest is pointless.

The biggest problem people run into is trying to net out $0 and end up having to pay. Whether you have the cash or not should you withhold too little you get penalized. Many people can't write out a $2000+ check come april and end up paying alot more in penalty than the interest savings they were hoping for.

 

[imported_LoKe]

You make 60k at your first job? Damn.

 

[XZeroII]

How are you not paying SS and Medicare? I don't know of any way to get around that. You may be liable for that as well in which case you'll have a huge bill at tax time.

 

[msparish]

Originally posted by: KB
You don't pay SS? How is that possible. I have been paying that since my first part-time job.

How much you get back depends on your income. Take a look at your tax rate at http://www.moneychimp.com/features/tax_brackets.htm

Lets say you make 50,000 this year, then you would be in the 25% rate. 25% of 50,000 = 12,500. Since you have no deductions I bet (no house payments right?), then you are probably going to owe more money this year, unless you end up making up this difference.

That's not how it works at all. You get to take either the standard or itemized deduction off of the 50k. Assume you take the standard deduction (around 8.5k this year), now you are only taxed on 41.5k. However, the first $7,825 is taxed at 10%, the next $24,025 at 15% and the rest at 25%. Therefore, the tax rate is about 13-14% (rather than 25%) and you pay about 6.8k. (This assumes you are single with no dependents).

 

[spidey07]

Originally posted by: XZeroII
How are you not paying SS and Medicare? I don't know of any way to get around that. You may be liable for that as well in which case you'll have a huge bill at tax time.

He works for local, state or federal government, they frequently have their own self funded retirement and medicare/pension plans.

 

[SearchMaster]

Originally posted by: spidey07

Originally posted by: XZeroII
How are you not paying SS and Medicare? I don't know of any way to get around that. You may be liable for that as well in which case you'll have a huge bill at tax time.

He works for local, state or federal government, they frequently have their own self funded retirement and medicare/pension plans.

Yeah, isn't that ironic? The rest of us are mandated by the government to fund the POS known as social security, but the government is not.

 

[spidey07]

Originally posted by: SearchMaster

Originally posted by: spidey07

Originally posted by: XZeroII
How are you not paying SS and Medicare? I don't know of any way to get around that. You may be liable for that as well in which case you'll have a huge bill at tax time.

He works for local, state or federal government, they frequently have their own self funded retirement and medicare/pension plans.

Yeah, isn't that ironic? The rest of us are mandated by the government to fund the POS known as social security, but the government is not.

Do as I say, not as I do. 😉

 

[EagleKeeper]

Originally posted by: G Wizard
i paid H&R Block over 2 bills to do my taxes one year.
never again....never never never never.

Send some of it to the AT Moderator account to compensate for the Tax thread that they allow ever year for the members.

 

[EagleKeeper]

By claiming 0 exemptions, you will get some of your tax withholding for both the Federal and State back.

Operating on the assumption that you are renting a place to live; I would expect that you will not have enough expenses to itemize with.

You are left with educational tuition expenses as the only option to lower your taxable income.

There will be tax S/W available at the end of the year, some free, some $20-30 that will take your numbers and in 30 seconds, let you know the status.

You will have the choice also to electronically file ($10-$20) if you desire.
Your income level is expected to be to high to qualify for some of the free filing options.

There may be some deals out there that will allow free filing; you will have to pay attention to the tax thread come January.

 

[EagleKeeper]

Originally posted by: Casawi

Originally posted by: Anubis
hnoestly just go to like H&R block if you have no idea about taxes, does not cost much and they will find thngs you wont and you will get money back

Good advice, how much they run over at H&R block ?

H & R block will charge close to $100 for Federal & State taxes for a normal W2 (unless you have some discount).

 

[spidey07]

Originally posted by: EagleKeeper

Originally posted by: Casawi

Originally posted by: Anubis
hnoestly just go to like H&R block if you have no idea about taxes, does not cost much and they will find thngs you wont and you will get money back

Good advice, how much they run over at H&R block ?

H & R block will charge close to $100 for Federal & State taxes for a normal W2 (unless you have some discount).

School'em Eagle. Take'em to school!!!!! Learn'em sumthin'!

😉

Thanks again for all your contributions to this forum and the annual thread.

 

[EagleKeeper]

Originally posted by: spidey07

Originally posted by: EagleKeeper

Originally posted by: Casawi

Originally posted by: Anubis
hnoestly just go to like H&R block if you have no idea about taxes, does not cost much and they will find thngs you wont and you will get money back

Good advice, how much they run over at H&R block ?

H & R block will charge close to $100 for Federal & State taxes for a normal W2 (unless you have some discount).

School'em Eagle. Take'em to school!!!!! Learn'em sumthin'!

😉

Thanks again for all your contributions to this forum and the annual thread.

As CC stated, why is the Moderator Tax thread paypal account still at zero.

It can not even cover the cost of a :beer: 🙁

 

[alkemyst]

Originally posted by: EagleKeeper

As CC stated, why is the Moderator Tax thread paypal account still at zero.

It can not even cover the cost of a :beer: 🙁

lolz

Seriously to the OP find a copy of turbotax and use it on your situation. It won't be 2007 figures but should be close enough for a W2 standard deduction scenario.

 

[jagec]

Originally posted by: alkemyst

Originally posted by: jagec
Tell you what, if you mail me $1000 every month, I'll mail you $12000 in April. Deal?

Most people aren't getting back $12k though. For most the worry of the 'man' holding their interest is pointless.

The biggest problem people run into is trying to net out $0 and end up having to pay. Whether you have the cash or not should you withhold too little you get penalized. Many people can't write out a $2000+ check come april and end up paying alot more in penalty than the interest savings they were hoping for.

You don't get penalized if you pay on time.😕

Valid point about the interest, though.

 

[Xavier434]

Originally posted by: jagec

Tell you what, if you mail me $1000 every month, I'll mail you $12000 in April. Deal?

It's simply my preference. I realize I am not making more money off of it. I know I could do things with it like invest or what not which could lead to me making more money yearly. I know I could also toss it in a savings account if I need to put it somewhere so I don't spend it. None of that really matters to me though. I am really happy with where I am in life in general along with where I am financially even though I am not even close to making six figures. I make plenty of money to do what I want and I don't care about trying to get rich. Claiming 0 and getting more back after filing for taxes is just a convenient way for me to get a nice surprise chunk of cash to do what I please once a year.

Life's much better when you don't worry about squeezing every penny.

 

[Xavier434]

Originally posted by: jagec

Originally posted by: alkemyst

Originally posted by: jagec
Tell you what, if you mail me $1000 every month, I'll mail you $12000 in April. Deal?

Most people aren't getting back $12k though. For most the worry of the 'man' holding their interest is pointless.

The biggest problem people run into is trying to net out $0 and end up having to pay. Whether you have the cash or not should you withhold too little you get penalized. Many people can't write out a $2000+ check come april and end up paying alot more in penalty than the interest savings they were hoping for.

You don't get penalized if you pay on time.😕

Valid point about the interest, though.

Penalized was the wrong word. He meant that the numbers don't balance themselves out and you need to pay the govt what you owe them in taxes. That's all. Allowing the govt. to keep a little extra is good insurance so that you get a surprise paycheck after filing instead of a surprise bill. It's all a matter of preference in the end though like I previously stated. You owe what you owe in taxes and that's the bottom line no matter how you cut it.

 

[alkemyst]

Penalized is the right word. You withhold too little during the year and you are subject to a penalty whether you pay on time or not. Also like I said though, most don't have a few grand lying around to cut a check to the IRS in April. They will talk about investing their 'savings' and all that but in the end they have spent it.

For most americans the tax differences do not add to a significant investment.

 

[Xavier434]

Originally posted by: alkemyst
Penalized is the right word. You withhold too little during the year and you are subject to a penalty whether you pay on time or not. Also like I said though, most don't have a few grand lying around to cut a check to the IRS in April. They will talk about investing their 'savings' and all that but in the end they have spent it.

For most americans the tax differences do not add to a significant investment.

Wait a second. I just thought that if you withhold too much (whether it be on accident or intentional) then you simply have to "pay your taxes" once you file. That's considered a penalty? Are you charged more than you would have had to pay if you withheld an acceptable amount?

 

[spidey07]

Originally posted by: Xavier434

Originally posted by: alkemyst
Penalized is the right word. You withhold too little during the year and you are subject to a penalty whether you pay on time or not. Also like I said though, most don't have a few grand lying around to cut a check to the IRS in April. They will talk about investing their 'savings' and all that but in the end they have spent it.

For most americans the tax differences do not add to a significant investment.

Wait a second. I just thought that if you withhold too much (whether it be on accident or intentional) then you simply have to "pay your taxes" once you file. That's considered a penalty? Are you charged more than you would have had to pay if you withheld an acceptable amount?

It depends on how much you underwitheld. I wind up paying taxes every year, never had a penalty.

 

[Ns1]

Originally posted by: Xavier434

Originally posted by: alkemyst
Penalized is the right word. You withhold too little during the year and you are subject to a penalty whether you pay on time or not. Also like I said though, most don't have a few grand lying around to cut a check to the IRS in April. They will talk about investing their 'savings' and all that but in the end they have spent it.

For most americans the tax differences do not add to a significant investment.

Wait a second. I just thought that if you withhold too much (whether it be on accident or intentional) then you simply have to "pay your taxes" once you file. That's considered a penalty? Are you charged more than you would have had to pay if you withheld an acceptable amount?

General rule: You must pay AT LEAST as many taxes as you did last year OR 90% of your tax liability to not be penalized

 

[Casawi]

F8ck I guess I claimed 1... how is this affect this whole scenario ?

AGAIN for those still wondering why I don't pay SS and Medicare is because of a treaty between Morocco and the US that I don't pay that for the first 5 years working in the US. I also get to make the first few thousands of dollars (I think like 3K) tax free.
I have to pay SS and Medicare next year don't worry.

I can't imagine I have to pay more taxes, they take ~$1020 from my check each month !!!! I am really in deep shit if I have pay in comes April.

 

[Casawi]

If I buy a home not in the US, can I still claim that interest ?

Thanks for all the info, I am really unfamiliar with this topic, and I don't want to get owned in the future if I already messed up this year.

 

[clamum]

I dunno, but I have this to say:


Prrrrrrrrr

 

[Casawi]

Originally posted by: clamum
I dunno, but I have this to say:


Prrrrrrrrr

You can get fired for being drunk at work Clamum