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

[alexranc]

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!

[Lisa995]

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.

[alexranc]

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

thank you!

[VolvoGirl]

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.

[Lisa995]

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)

[alexranc]

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.

[Lisa995]

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.

[alexranc]

Thank you for the help!

[Lisa995]

Youre welcome!

[Opus 17]

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.