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Do you pay taxes on 401k withholdings?
By withholding I will guess that you mean the amounts that you are contributing to your 401K BEFORE income taxes (deferred compensation amount) that will not be subject to the income taxes during the year and will reduce the amount of your taxable gross wage amount that is reported in box 1 of your W-2 form at the end of the tax year. The deferred contribution amounts will be subject to income tax in future years when you retire and start receiving distribution the taxable distribution amounts from your 401K plan and at that time the taxable amounts will added to all of your other gross worldwide income on your 1040 income tax return and subject to the federal income tax at your marginal tax rate.
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In the USA, if you are paying the required minimum monthly payment each month and your loans are not in default, then NO the government can not keep your tax return. If you ar…e repaying your loans while in a default status, then YES the government can keep your return. If you need help getting your loans out of default and off the tax offset list, then click on my username, Studentloaner, below.
Two reasons. Before Pay As You Go (or withholding as we now know it) at the end of each year every taxpayer had to scrape together all of the taxes owed. This could be a h…uge sum, and not everyone was disciplined enough to save throughout the year. The second reason was World War 2. WW2 created huge problem with funding the war, and as a result war bonds were being issued and pushed to cover the gap between when the country needed the money and when it actually received it. Basic cash flow.
A Cooperative Society does not pay withholding taxes. Withholding taxes are taxes deducted at source from incomes earned by individuals and corporate bodies that are subject t…o payment of taxes. The taxess so withheld are subsequently deducted from the final tax liabilities of such individuals/corporate bodies. Since Cooperative Societies do not pay taxes on their profits it will be impossible to deduct such withheld taxes and so the Cooperative suffers.
Withholding taxes are taxes that are subtracted from a payment by a third party before you receive the payment. Examples of this are: your employer takes taxes out of your pay…check before giving you your pay only only gives you what is left of your pay. Or a casino subtracts taxes from a jackpot you won and only gives you what is left. Non-withholding taxes are taxes you have to pay yourself directly to the government. Examples are a check you send with your Form 1040 or a payment you send when you get your real estate tax bill. Remember that withholding taxes do not represent the actual amount of tax you owe. They are just a crude estimate of what you actually owe. The actual amount owed is calculated when you fill out your Form 1040 at the end of the year. Most people do not properly fill out Form W-4 that they give to their employer and so pay much more withholding tax than they need to. Then at the end of the year when they fill out their Form 1040, they get a refund.
Distributions from your 401K after you reach your retirement age the taxable amount will be subject to federal income tax at your marginal tax rate and may be subject to some …state income tax.
Distributions from a 401k are taxed like any other income. So, it depends on how much you are receiving each year. If you receive $30,000 a year from your 401k, you will… be taxed the same as any person who makes $30,000 per year.
If you are over 59 1/2 you can withdraw money from your 401k for any reason. If you are under 59 1/2 you can take a loan on the 401k in most cases. Ask your 401k administrator… about this. Also, if you were thinking about taking a hardship withdraw to pay off your second mortgage, that isn't allowed. In terms of your house, hardship withdraws are only available to purchase a primary residence or to prevent eviction or foreclosure on your primary residence.
You can have some income tax withheld from the distribution amount are you can choose to make some quartely estimated tax payments or you can wait until you file your income t…ax in the next year after the year that you receive the distribution amount by the due of your income tax for the previous year return and pay the full amount of taxes at that time. A calender year taxpayer the due date for filing and paying any amount owed would be April 15 of the next year
when you withdraw the money, yes.
Yes, you do. You have to pay nonresident state tax meaning you earned money in VA, but didn't live there. The only exceptions (due to a reciprocal state tax) would be if you e…arned money in VA, but lived in District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia.
Answer . Because the money in your 401(k) has never been subject to income tax, all withdrawals for any reason will be taxed as ordinary income. Furthermore, if you take a …premature (generally, under age 59 1/2) distribution from your 401(k) to purchase a home, the distribution will additionally be subject to a 10% penalty tax.. You make take an early distribution of up to $10,000 from an IRA to pay qualified acquisition costs to purchase, build, or rebuild a first home without incurring the 10% penalty tax. The distribution will still be subject to income tax.. http://www.irs.gov/publications/p590/ch01.html#d0e8323. First Time Home Buyer Tax Credit . If you purchased a home for your principal residence after April 8, 2008 and before July 1, 2009, you may be eligible for a First Time Home Buyer Tax Credit of up to $7,500 for your 2008 tax return. To be eligible for the credit, you must not have owned a home as a principal residence in the previous 3 years.. http://www.efile.com/tax-deduction/income-deduction/home-deductions.asp
Generally, your contributions aren't taxed (put in before taxes), and your withdrawals are taxed.
NEWS ALERT: YOUR IN BANKRUPTCY...YOU HAVE TROUBLE HANDLING FINANCES, You have more debt than you can handle...COMMON SENSE: BORROWING MORE TO GET OUT OF DEBT DOESN'T WOR…K! Don't do it, don't do it, don't do it! Your 401k is exempt from seizure under virtually all circumstances...including bankruptcy. (Example...OJ Simpson, owed a lot to the Browns after they won the wrongful death suit....they could take his Heisman trophy, his cars, his future income from autograph signings, etc, etc....and did and continue to. As a judgement, he can't even escape it through BK. But, they can not touch his multi million dollar 401k/IRA.) If you take a loan against the 401k, the money is no longer protected...it can and will be taken by creditors...given the opportunity....and since your already in serious financial problems now... it's highly possible that can come about. Then your left with a new debt to pay off, that uses up your 401k....and nothing else. Well, something else - you'll have a big new tax bill and debt, because not paying back the loan of the 401k is the same as withdrawing it...so you pay a penalty and everything becomes income! (Rule of thumb, depends on State, but when it becomes a withdrawal, which happens many, many ways, you should consider tax and penalty to be @40% of what you took out). Don't do it, Don't do it, Don't do it! Read the News Alert Again: Making a new debt can only make your problems worse. Now...as maybe a more direct answer: There probably isn't a law against your borrowing from the plan. However, depending on your BK, especially in a C13 though, you agreed to only make financial changes with the approval of the trustee. Failing to do so is almost always responded to first by the BK protection being ceased, and sometimes by fraud charges because not keeping your promises to the court falls under that. Finally, the trustee has a right to the funds when taken out and would want them to pay the creditors in the order required by law/the plan. That may or may not include the IRS. Your paying the IRS would be considered a preferential payment by the other creditors, and they would likely succeed in having the money returned to them.
That is the job of the Federal Government and State in which you live. It is not something you can or should be involved with. If they fail to pay, you are not liable, they ar…e. The easiest way to see if they are paying at all is if they still give you a check. The Federal Government is fairly quick to shut down companies that don't pay.
All tax the is withheld from your paycheck is based on your gross income for the pay period. The percentage for FICA for the employee is 6.2% and for Medicare tax is 1.45% of …your gross income. Now the State and Federal Income tax withheld is based on your gross income but is not just a percentage. There are tax tables that give the amount to be withheld and it takes into account the filing status of the employee and the number of exemptions he/she claims on their W-4 form. The employee can also have additional flat amounts withheld in addition to the tax table amounts. The taxpayer can also claim exempt from Federal and/or State withholding if they did not owe any tax in the previous year and do not expect to have any tax due in the current year. The employee is completely responsible for these actions. The employer matches the FICA and Medicare Taxes that are withheld from the paycheck, so in effect the employer and employee each pay half of these taxes.