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:

big_scott_larock:
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.
StephenWeinstein:
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.
Judy:
nope, about right
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