I feel like I got taxed more than I should have.?

At my new job, I worked 9.57 hours at $7.25/hr. Nothing was taken out for Federal Income Tax, which squared with what paycheckcity.com's calculator figured. My second paycheck, I worked 69.38 hours at $7.50/hr. $38.62 was taken out for Federal Income Tax, while according to paycheckcity, it should only have been $22.09. My state is Pennsylvania. I am 99% certain I put a "1" in the number of exemptions row. Any advice is appreciated!

Anonymous2008-10-11T13:44:10Z

Favorite Answer

There are 2 ways to calculate FIT. Your company used the percentage method. When I use single 1, biweekly, I get $39.

IRS pub 15, page 38.

Anonymous2008-10-11T13:40:10Z

Go recheck your W-4 with the employer. Paycheckcity.com is just an estimating tool.

r_kav2008-10-12T09:46:31Z

If too much is withheld, it will be refunded when you file your tax return next February.