Witholdings from paycheck

[lukatmyshu]

So I just started my first full-time job and I was looking at how much I pay in taxes in pay-period (2 weeks). It's 850 bucks ... at this rate I'm paying around 37% of my salary in taxes ... WTF!!!! Is this right? I feel like I'm paying too much right now, and I should figure out some way to lower it.

 

[Joemonkey]

are you talking federal only, or ALL witholdings?

that sounds about right for all the stuff (fica, federal, state, medicare, etc. etc...)

 

[guyver01]

i make over $2100 a payperiod, but only see $1200.... and that includes about $400 for 401k... so i'm really taking home $1600 out of $2100.

so about 30%

 

[Pliablemoose]

Welcome to the world of the working:

My stub:

Retirement deduction 20.28
Medicare Tax 35.26
Health Insurance 105.22
Life insurance 19.80
Union dues: 12.00
OASDI Tax: 150.76
Federal Tax: 282.42
Retirement deduction: 354.93

 

[Spacehead]

Mines about 28%.

 

[lukatmyshu]

The only reason I think it's strange is because I have a friend who is making LESS than me (about 8 grand a year less) living in SF (I live in Sunnyvale) and he takes home 400 bucks a month more than I do. The only difference is he owns a home and I rent. Freakin' pisses me off. Now I REALLY want to buy an apartment. I can't afford not to ..

on a related note, is it "I can't afford not to" or "I can't afford not toO"?

 

[arcas]

If he owns a home, he's probably told his employer to reduce his withholdings to account for the interest he's paying on his mortgage.

 

[Chiropteran]

Originally posted by: lukatmyshu

on a related note, is it "I can't afford not to" or "I can't afford not toO"?

Too= also.

So If you are trying to say "I can't afford not also" the second one is correct.

 

[Orsorum]

Welcome to America, where half of your money belongs to your congressman, your employer, and your neighbor. Well, basically everyone but you. And you should feel grateful for it.

 

[kranky]

Separate the deductions you can control from the ones you can't control.

You can't do anything about Medicare, Social Security (aka FICA, aka OASDI), and probably state tax.
You can do something about Federal tax by adjusting your W-4 form with your employer. Make very sure you don't overdo it, because if you have them take out too little, you could be subject to penalties at income tax time.
What other deductions do you have?


And it's "I can't afford not TO".

 

[Dunbar]

It's funny how you never hear politicians talking about how regressive payroll taxes are. All they talk about is federal income tax.

 

[NogginBoink]

Welcome to the real world, kid.

("can't afford not to," as in "not to buy one.")