How can I reduce my tax burden on paychecks?

On last week's check I grossed $1,650 and paid over $500 in taxes. I'm a single guy, living on my own, and I feel like I'm paying way too much. Am I wrong?

Best Answer:

big_scott_larock: I don't know how many allowances you claimed on your W-4 or whether your income is variable or fixed. But unless you have dependents, I am guessing that you are in the 28% tax bracket ($462) plus social security tax, Medicare tax, and possibly state income tax (if your state has that). So that could be normal.

Note that if you try to claim too many W-4 allowances and owe more than $1,000 when you file income taxes by April, there may also be a penalty (with a few exceptions).

Other answer:

not all the $500 is income tax, other taxes are withheld, ie FICA, 7.65% which is not refundable, maybe a state employee tax also not refundable
you may have indicated on your W-4 as 0 allowances and they will able to withhold the maximum income tax on your gross, you can change that with a new W-4
if you make $1650 a week, x 52, that's over $80K a year, and you will definitely owe several thousand dollars income tax when you file
Pascal the Gambler:
You can increase the number of allowances. That just changes what is withheld, it doesn't change your tax liability at all. Not too much for a single filer at that income level, no.
You are wrong. You are not paying too much. You are obviously in the U.S., because you would be paying a lot more if you were in another country. What you are paying is low, even for the U.S., but it would be too low for another country.
nope, about right

Leave a Reply

Your email address will not be published. Required fields are marked *