The Tax Questions Blog

Posts Tagged ‘are lost wages taxable’

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Question: I need help with my taxes, because I think I'm losing too much.?

Hi, I'm a paid intern earning $8/hour, and was calculating what percent of my money automatically went to taxes last year, and came up with a whopping 14%. Is this a lot? I'm only working 8 weeks this summer, and will be going to college next year, so every bit of money will help.

This is a copy of my wages YTD last year, and the tax deductions that occurred. The columns go from State, Tax Classification, Taxable Gross, then taxes. Can you break each one down for me, and maybe tell me if I can get one or two removed, and if so, how? Thanks!

FED OASDI/Disability - EE $645.00 $39.99
FED FICA Med Hospital Ins / EE $645.00 $9.35
FED Withholding $645.00 $46.56
CT Withholding $645.00

Answer: The amount withheld is based on the W4 that you filled out. It withholds and assumes that you will be working for the full year. At the beginning of next year when you file your tax return, you will get a refund back if you paid extra.

If you believe you are having too much federal income taxes withheld, you can refile your W4 and add exemptions to reduce your taxes.

Use this calculator to estimate the taxes you will owe.

http://www.dinkytown.net/java/Tax1040.html

Social security tax is fixed at 6.2% and medicare tax is 1.45%.

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