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What IRS publication is used to calculate federal income tax withholding amounts for payroll checks?
Generally, the following: Social Security: 6.2% Medicare: 1.45% Income tax withholding for federal and state it depends on how many exemptions you claimed… when you filled out your W-4.
Origin The roots of IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the position of commissioner of Internal Revenue and enacted an income …tax to pay war expenses. The income tax was repealed 10 years later. Congress revived the income tax in 1894, but the Supreme Court ruled it unconstitutional the following year. 16th Amendment In 1913, Wyoming ratified the 16th Amendment, providing the three-quarter majority of states necessary to amend the Constitution. The 16th Amendment gave Congress the authority to enact an income tax. That same year, the first Form 1040 appeared after Congress levied a 1 percent tax on net personal incomes above $3,000 with a 6 percent surtax on incomes of more than $500,000. In 1918, during World War I, the top rate of the income tax rose to 77 percent to help finance the war effort. It dropped sharply in the post-war years, down to 24 percent in 1929, and rose again during the Depression. During World War II, Congress introduced payroll withholding and quarterly tax payments.
Taxation allows many, many different methods for depreciation. These include: Straight line, Double Decline, ACRS, MACRS, etc., etc., and in many years (like in 2008&9) there …are special allowances like "bonus" first year depreciation. The method or terms used for tax doe not, and in fact generally aren't the same as book. The class and category of the item to be depreciated usually defines the term (how many years), but there are many ways to deviate and for it to be acceptable. In fact, establishing you own and justifying it by engineering studies or such is allowed. Normally, as tax is looking to increase deductions to lower taxable income, it takes a faster method than book...but depending on income and asset purchase projections, this may not always be true. The method may be elected differently for each purchase, even of the same type of item. However once started it must be continued unless you get a formal Change Of Accounting method approved, which is a .......
Absolutely, and many more things concerning payroll, etc...adhereing to the rules for this. And of course, people are rerquired to make estimated payments toward th…eir eventual tax liability (through withholding or other means, all absolutely completely described), or face substantial penalties, interest and other problems.
Log onto IRS.gov and type into the search box "where is my refund" and the link will show up. Once you follow that link you will have to input your information and it will all…ow you to see if there is a hold and the expected date.
That is the money not in the check you receive but rather taken from the amount you earned and sent to the Fed gov't (IRS) on your behalf, where it is in an account and you cl…aim to pay for the TAX due from you on earnings for the year. It is an estimate of how much you may owe on those earnings, the actual amount, which changes with every persons situation, may be more or less.
They use the Form W-4 that the employee fills out and gives them and then they look up the amount to be withheld in Publication 15 (a.k.a. Circular E).
It uses withholding because it needs a steady stream of income to pay for its expenditures and also because most people would not save enough money to be able to pay their tax…es all in one lump sum after the end of the year.
When calculating my tax refund and I am asked to enter the amount of federal taxes paid does that also include withholdings for medicare and social security?
No. Only INCOME Tax estimated or wittholding...payments made toward INCOME tax that you are calculating. By the way, Medicare/SS are considered insurance payments.
The IRS can garnish up to 15% of your Social Security check unless you work out an alternate repayment plan or are categorized as "uncollectible" due to income and expenses. … If your Social Security benefits are in a bank account that has funds from other sources, the IRS may levy the account and take a larger amount. It would be in your best interest to contact the IRS to discuss your options.
Can you instruct your payroll department not to withhold any federal and state taxes from your paycheck?
Only under very limited circumstances if, for some reason, you are qualified to be exempt from withholding taxes. Under most circumstances, no. The company is required to with…hold taxes and report employee earnings.
No not in and for the same years income tax return.
Your state can flag your account to withhold your federal refund in order to meet a debt owed;however, in general, your state,they can only take your taxes if you owe on a stu…dent loan, have back child support, or owe taxes. I guess you need to contact Dept of revenue of your state.
16. The Thurstons' total federal income tax withholding is $
In US Air Force
If all depends on their income. He may have all kinds of income. He may own rental property or stocks. You cannot answer the question with the information given. = ans == The… amount one pays as income tax depends on their TAXABLE income. It is a percentage of that income. The exact percentage used depends on the level of that income. Taxable income depends on many things: Earnings from employment for sure, earnings from other sources (investments, government payments, etc.), and even then certain items of each may be not included, or things you may not receive in cash may be included. For example - the contribution to a 401k is not taxable income, even though it is part of your salary. On the other hand, certain benefits you may receive, like employer paid life insurance, car allowances, even access to a cafeteria that has reduced prices because of an employer supporting it), may result in taxable income to you. Once the amount of taxable income is determined, then the deductions to that income are applied. For example, interest paid on the mortgage for your home, number of dependent children, number of other qualifying dependents, medical costs, certain expenses of making that income, state taxes paid, etc.). Hence, any 2 people, holding the exact same job at the exact same salary and benefits, may well have 2 entirely different tax amounts due. Once the amount of taxable income is determined, looking at the tax rate charts (made by filing status, for example single filer verses married filing jointly), for that income determines how much one actually must pay. THE AMOUNT ONE RECEIVES "BACK" AS A REFUND IS SIMPLY HOW MUCH THAT IS LOWER THAN THE AMOUNT THEY PAID IN AS ESTIMATED PAYMENTS - OR IN MOST CIRCUMSTANCES - THROUGH PAYROLL WITHHOLDING. You actually control how much that was when you completed your W-4, and hopefully it is about right for the amount needed to be paid, or you incur penalties and interest. Simple Common Sense on when you need to file a return: It really makes no difference since the only time you actually do WANT to file is when the IRS says you don't have to! They don't do that because it's good for you. They do it because it is more likely to be good for them. Certainly if you don't have to file, NOTHING BAD, in fact only good things, can happen by doing so. Federal Taxes are the same throughout the country. State tax laws are specific to each area. Whether you have to file a tax return (or pay tax) depends, in part, on your filing status, deductions, amount & type income. There are no such things as "start and stop" ages, not having to pay because of retirement or on social security or working from home or a student. It is all addressed as a matter of "how much TAXABLE income." (Note: working isn't relevant either, as many people who don't work or are retired, or disabled, or old, or young, or in school, have income from many sources: savings, investments, etc. TAXABLE income is different than what you may otherwise think of as income. In most circumstances, you have to do many of the calculations needed to file a return, just to determine what taxable income may be). Likewise, there are no special or fixed rates for retired, student, doctor, sanitation worker, President, convict...whatever. The amount of taxable income after applicable deductions and adjustments determines the rate applied to your particular situation. The rate, as well as the amount, you pay changes as the amount of income does.