topic Youre welcome! in Get your taxes done using TurboTax

I am now making $75,000, how much will I be taxed in April?

alexranc — Fri, 31 May 2019 23:49:56 GMT

Hello!

I just started making $75,000 at my job. Below is how my bi-weekly checks are looking. How much in taxes will I pay come April? I used numeroues online tax refund calculators to see if I would get money back and they are all saying I owe $1,106 at the end of the year. I then used the IRS tool (http://apps.irs.gov/app/withholdingcalculator/) and it says I will get a $125 refund.

MY PAYCHECK

Bi-weekly Gross Pay - $2,884.62

# of Federal allownces = 3

Federal Withholding - $421.88

Social Security - $178.85

Medicare - $41.83

Florida taxes - $0.00

Net Pay - $2,242.06

Thanks guys!

Your filing status and number of dependents and whether y...

Lisa995 — Fri, 31 May 2019 23:49:58 GMT

Your filing status and number of dependents and whether you itemize your deductions or take the standard deduction play a HUGE part in this question and you didn't provide any of that information.

Im so sorry! I am single with no dependents and I will be...

alexranc — Fri, 31 May 2019 23:50:00 GMT

Im so sorry! I am single with no dependents and I will be taking standard deductions.

thank you!

And it depends on a lot of other things. You need to est...

VolvoGirl — Fri, 31 May 2019 23:50:02 GMT

And it depends on a lot of other things. You need to estimate your total income for the year from all things like what you made from January to now.

Single, no dependents and standard deduction...your feder...

Lisa995 — Fri, 31 May 2019 23:50:02 GMT

Single, no dependents and standard deduction...your federal allowances shouldn't be more than 1 (claiming 3 will leave you with money owed come year end)

Lets say my total income is $75,000 for the total year. I...

alexranc — Fri, 31 May 2019 23:50:04 GMT

Lets say my total income is $75,000 for the total year. I also have an SCORP that is making around $15,000 but also has around $15,000 in expenses.

If the S-corp yields NO income to you personally, the job...

Lisa995 — Fri, 31 May 2019 23:50:07 GMT

If the S-corp yields NO income to you personally, the job where you make the money should have Single/1 on the W-4 in order to "break even" or get a small refund at tax time. Claiming 3 will leave you under withheld...all you have is yourself, there's no reason you should claim 3 allowances.

Thank you for the help!

alexranc — Fri, 31 May 2019 23:50:09 GMT

Thank you for the help!

Youre welcome!

Lisa995 — Fri, 31 May 2019 23:50:11 GMT

Youre welcome!

I think both calculators are right because they are using...

Opus 17 — Fri, 31 May 2019 23:50:13 GMT

I think both calculators are right because they are using different assumptions. If you made $75,000 for the entire year, then your W-4 should read single with 1 allowance, for your particular circumstance. But if you were not working for the first 5 months of the year, and then take a job at 75K, your actual income for this year will be around $40,000. The standard deduction and personal exemption are amortized over a shorter period and have a larger effect, so it could indeed be the case that Single/3 brings you close to break even.

If you keep it at single/3, you will get more take-home pay now and a smaller refund, but you will have to change it to single/1 on January 1, 2016 so you aren't under-withheld next year, and that will cut your take home next year. If you change it to single/1 now, it will give you more time to get used to the lower take-home pay, but will give you a larger refund for this year.