For example, in the state of CO, if someone makes $2000 a paycheck (twice a month), and their actual check is for $1400, is there too much tax being taken out, or is that about right?
Is there anything one can do to increase the check amount but not pay at the ending of the year?
I just started a new job and I was expecting more per paycheck, but I never know how to fill out those W4 forms, so I am wondering if I made a mistake.
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Judy
Favorite Answer
Depends on what else might be coming out of your check, like maybe a 401k contribution or health care premiums.
There should be around $153 out of each paycheck for social security and medicare, and around $93 for Colorado income tax. If you are single, not a dependent, and don't have any dependents, don't itemize deductions or have any credits you can take, your federal income tax per paycheck would be somewhere around $270. That's over $500 total per paycheck.
If a lot more than that is being deducted for federal taxes, then you could change your W-4 to get less taken out. But realize that if you get less taken out, then you either get less of a refund at the end of the year or have to pay, since the total amount withheld for federal tax during the year plus or minus what happens at the end stays the same.
If anything else is taken out besides social security, medicare, state and federal income tax, your check is probably about right.
Bostonian In MO
That's in the ballpark. If you're claiming 0 withholding allowances, your net should be around $1,417 or so. If you're claiming 1 allowance, it should be around $1,455 or so.
Go here for some handy paycheck calculators: http://www.paycheckcity.com
Anonymous
that does sound very high