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I make $700 but I pay $200 in taxes is this normal?
Additional information: I work IT in the U.S. CT my total income will be around 25,000 since I wasn t working for part of the year.
I did the math and I think it comes out to be around 28% this seems a bit high.
13 Answers
- ernesthintonLv 66 years ago
Your question does not consist of enough information for me to give you a correct answer. How often are you paid? Are you a common law employee or statutory employee? http://www.irs.gov/publications/p15/ Are there benefits being taken out such as healthcare, 401K or life insurance? I will tell you that you live in Connecticut and Connecticut is one of the highest taxed & (racially segregated ) states in the union. I have sent you a copy of Connecticut State withholding and Publication 15 via the IRS. $200.00 is a bit much if it is a weekly payroll, I was thinking around $179.00. Again, it is contingent upon what filing status you chose on your W4 form and Connecticut withholding form and the other items that are being taken out.
- troLv 76 years ago
53.55 of that $200 is FICA, maybe another $7 is a state employee tax
the rest is probably income tax and this will be based on how you filed your W-4 with your employer
if you claimed 0 they take the maximum they can based on your gross, you probably need to change your W-4 depending on what your status is and if you have dependents
- Anonymous6 years ago
They take OUT in taxes the amount YOU TOLD THEM TO when you filled out your W4 (see link below)....you can amend that at any time, it will just mean you'll owe more (or less) or get a refund when you file your Tax Return next year...
Source(s): http://www.irs.gov/pub/irs-pdf/fw4.pdf - BLv 76 years ago
7.65% comes out for social security automatically
then you get your CT state tax
then your federal tax -- this is probably where you are going wrong. Check your W4 which you signed, you may be declaring 0 exemption and getting too much federal tax withheld. Try declaring 1 exemption.
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- StooLv 76 years ago
Probably, depends what the deductions are, but payroll taxes take off a slice regardless of income, and if you've elected to take tax off per cheque, that would be the rest of it.
- JudyLv 76 years ago
$700 a week? maybe, although you'll probably get a small part of it back as a refund when yo file your taxes.
- Stephen McBrideLv 66 years ago
It sounds to me like you are paying the self-employed tax rate. If so, that is correct. :) You pay both halves of it, employer and employee. Is your "employer" handing you a w2? Or a 1099?
- StephenWeinsteinLv 76 years ago
That seems low. It is not normal to pay less than 30%. It is normal to pay more.
- DonaldLv 76 years ago
It's high.
However, don't confuse the amount withheld for taxes for the amount you'll actually pay.