The simplest answer is, the more money you make the more you pay in taxes. For instance, if you made $50,000 this year and Joe Somebody makes $15,000, and you are both single. You will have taxable income of $36,150 while Joe will only have taxable income of $1,150.
Joe will have $150 in tax liability because his income all falls in the 10% bracket. ($1,150 x 10%=150)
You on the other hand will have a tax liability of $4,118 as you will be in the 12% bracket. The first $11,000 will be taxed at 10% then the rest will be taxed at 12%.
$36,150-11,000=25,150
$11,000x 10%= 1,100
$25,150 x 12%= 3,018
1,100+3,018= 4,018
So if Joe had $1,500 withheld and you had $1,500 withheld, Joe would be getting a refund, while you would owe taxes.
If you are single with no children and not in school, there are not a lot of credits available to change your taxes due. If you are having to pay in now or would like to increase your refund, you may want to change your W4 with your employer. You can choose to have an additional amount withheld.
Also, if you have multiple jobs, your employers are likely withholding only for your wages at that job. You would want to redo your W-4 so that it reflects a higher income. There is also a spot to note that you have more than one job.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
