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.
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
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.
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