General Question

waterskier2007's avatar

How are taxes calculated?

Asked by waterskier2007 (2050points) June 11th, 2008

in regards to income tax. is there a set algorithm that the government uses to calculate how much you are taxed from your paycheck based on your dependencies. how does this work

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4 Answers

seVen's avatar

http://www.IRS.gov should have info on it

srmorgan's avatar

Withholding schedules are designed to withhold enough income every pay cycle such that you owe no obligation to IRS when taxes are filed the following year.

When you fill out a Federal W-4 you are listing your marital status or other filing status and listing your exemptions and you should end up with the proper amount of taxes being withheld, all other things being equal.

For example if you are single with just yourself you could claim single “1” and that is how you will be taxed on each pay date.

It never works out right to the penny but it should come out close.

Please note that in addition to income taxes your employer is withhodling Social Security tax at a rate of 6.20% and medicare tax at a rate of 1.45%.

SRM

agnesdarleneaustin's avatar

How much taxes will be taking out of my paycheck I made 1385.00

Adirondackwannabe's avatar

$1385 for the week or for two weeks?

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