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https://en.m.wikipedia.org/wiki/Progressive_tax
The withholding is calculated by extrapolating how much you'd owe in taxes if you earned this amount for every paycheck. If you know how much you're projected to earn over the year, you could ask whomever handles your pay to adjust it to the correct percentage. Either way, come tax time it'll be settled and you'll either get back however much you paid in excess, or you'll have to pay a bit extra at the end of the year.
If you know how much you're projected to earn over the year, you could ask whomever handles your pay to adjust it to the correct percentage.
earnings are highly variable. the best I can do is I keep a spreadsheet, on which I calculate hourly and weekly and monthly averages. And I've only been there a month so not enough data to extrapolate from yet.
come tax time it'll be settled and you'll either get back however much you paid in excess
well thanks, they are deducting so much from me (26% ?!) that I certainly would be due a refund. Were it not for another tragic turn in my personal circumstances, in which the IRS has been garnishing all of my tax refunds since 2014 because of something stupid my ex-husband did in 2009 π‘
This is how the tax rate works. As for your fear of them taking 100%, they wonβt. The max single-payer tax rate, as of 2023, was 37%.
Thank you π
I assume you are hourly?
Yup
What's up with the down votes? This is literally the kind of content we should be boosting here. OP is clearly struggling financially and has probably never been taught how taxes work, and the primary goal should be to help people learn to manage their finances, not down vote because someone asks a tricky question.
I provided some info down thread, but OP, if you provide some more info (kids, expected annual income, state of residence, IRS garnishment details, etc), I'm happy to walk you through it. There may be a way to get you more cash each paycheck, but I need a lot more details.
has probably never been taught how taxes work
I worked at H&R Block as a tax preparer for the 2001 tax season π So I do kinda understand taxes even though that was a long time ago and I don't really think or care much about all the things I used to know anymore.
The last place I worked at in Nevada, I kept careful track and noticed 13% government deduction every paycheck. I noted it and figured my finances accordingly. No big deal.
But this California 26% government deduction is blowing my mind. It's outrageous. And someone else in the thread said to rest assured that the govt would never withhold more than 37%. But even 37% max is ridiculous. That's nearly half of our hard work turned into govt slave labor! Now when I'm at work I am consciously bitterly aware that 1/4 days I'm involuntarily working for free π‘