What will the basic rate of tax to pay on your earnings be in April 2008?

Answer 1

Gee predicting the future? Well actually it's more than likely things won't change much.

But your question shows a lack of understanding.....you pay no more or less tax on income at any point during the year. (Hence you could earn $10,000 in April and owe nothing or earn that and owe much more, depending on other things you have, or are predicted to have happen during the year. And what you mean by a "basic" rate is anyones guess.

So it depends on many, many things...not the least of which is what you consider tax. Many people group all their withholdings as a type of tax, but many may not really be. Workers Comp, Unemployment, even FICA are all really more an insurance payment than a an income tax, although they all come out of your paycheck and look the same.

The amount of tax being withheld also depends on may things...obviously which state (or even city) your in, the amount of income your projected on earning over the year, (which helps determine your tax bracket and the percent that may be needed), as well as your filing status, number of dependents and other deductions. All these things can be adjusted for your circumstances by properly and completely filling out (or changing) the Form W-4 all employers ask you to. Finally, there are a number of different legal ways for the payroll provider to calculate certain aspects of the amount to withhold...but overall they make only a small difference. Remember, anything withheld is just being done as an estimated installment payment toward whatever tax, if any, you do ultimately owe. If too much is withheld, it is refunded. (Too little, and you could pay a penalty). Again, adjusting your W-4 is the way to correct for any of these circumstances.