- Joined
- Oct 12, 2013
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- Communist
Wait a minute for the poll.
Here is my personal situation:
Income from all sources = $33,016.66
Federal Income tax, Social Security taxes and Medicare taxes = $3,018.66
Federal Refund = $5,116.00
North Carolina Income tax = $1,133.16
North Carolina refund = $456.00
My federal taxes were at an effective rate of -6.35%
My state taxes were at an effective rate of 2.05%
My overall effective tax rate was -4.30%
I voted for the 6th and the 8th option.
For my wife and I put together, our federal tax rate was ~10%, State tax rate was ~4%, and medicare/medicaid taxes are 7.65%. So about 21.5% total.
You really should fix your withholding. If part of that refund is EIC you're having too much withheld. If you're not getting any refundable credits then your withholding is way, way, WAY too high. Why, if you're making $30-35k/yr, would you possibly let the government hold on to 15% of your income interest free? If you could make the whole year without that money then put it into an IRA or something where it's going to benefit you.
But the first portion of your income is not taxed. The standard deduction for 2013 was $12,200 and an additional deduction of $3,900 per person in your household.
If your income was around 75,000 and you have 2 kids that 10% comes out to be 6.29%.
You really should fix your withholding. If part of that refund is EIC you're having too much withheld.
The 10% is the actual rate at which we were taxed, not our tax bracket.
I have done that but I can only reduce my FITW to $0.00. Social Security and Medicare cannot be reduced. The federal government will still take out 7.65% no matter what your tax situation is.
There is a way to get Advanced Earned Income Credit. I have done that before but I worked at a bigger company. The company I work for is very small and probably 9 out of 10 of them are eligible for Advanced Earned Income Credit. They probably wouldn't be comfortable doing it.
If you notice that in the scenario I combined Federal Income Tax, Social Security Tax and Medicare tax all as one tax since in reality that is what it is. I have done payroll before. The company writes one check for all 5 of these taxes.
1. Federal Income Tax
2. Social Security (employee portion)
3. Social Security (employer portion)
4. Medicare (employee portion)
5. Medicare (employer portion)
All five of these are added up together and sent to the Federal government in one lump sum for all five of these taxes.
What I'm focused on is your refund. I'm guessing that even if you're getting EIC that would only account for about half, at most, of your refund amount.
None of your business.
You are right about $774. $735.79 of that was held against my will. The income was not from a job and the taxes were held up front no matter what I thought about the situation.
Without signing up for Advanced Earned Income Credit I really only had $38.21 too much withheld.
I knew that I'd run into that answer sooner or later.
What I'm focused on is your refund. I'm guessing that even if you're getting EIC that would only account for about half, at most, of your refund amount.
sales and property tax
Ah. So you must be married.
Lutherf said:Hmm...you mentioned that the income wasn't from a job. Are you being subjected to backup withholding on a 1099?
Job 1 $15,832.92
Job 2 $13,504.81
Additional income $3,678.93
Job 1 Social Security $981.64
Job 2 Social Security $837.80
Job 1 Medicare $229.58
Job 2 Medicare $195.82
Job 1 Federal Income Tax Withheld $38.03
Job 2 Federal Income Tax Withheld $0.00
Additional income Federal Income Tax Withheld $735.79
Federal tax ($523.00)
Child Tax Credit $523.00
Additional tax ($368.00)
Earned Income Credit $3,233.00
Additional Child Tax Credit $1,477.00
I hope you can follow all of these figures.
These weren't part of the equation. There is a reason that I referenced April 15. Also, you should have chosen option number 7 as well. You are allowed to choose more than one answer.
But we don't have a state income tax, so not including those numbers is not genuine.
Yes but how did you come to that conclusion?
I cashed in a 401(k) while the market was up. I'm not so sure I came out as good as I thought.
I paid in about $1,800. I took out $3,678.93. I paid a penalty tax of $368. The $3,678.93 also put my income on a less lucrative part of the EIC chart. I still got back the money that I put into it but I don't think I made 12% gain overall.