Federal withholding from IRA distributions is optional. Some states have mandatory withholding.
Your federal withholding should be enough so that at the end of the year the total tax that has been withheld from all payments, including your salary, pension, Social security, etc totals at least the lesser of:
1) 90% of the tax due for the year.
2) 100% of the tax due for the previous year (110% if the previous year's AGI was more than $150,000 or if you were married filing separately and your AGI was more than $75,000).
You can choose whichever is less.
Note that option 1) requires being able to predict your tax for the year, whereas option 2 always works.
So for example, if you are taking a lump sum distribution in 2009 and you think your total federal tax for 2009 will be $10,000 but your total tax for 2008 was $1,000, as long as the total taxes you have withheld from all sources is $1000, you will be safe from any penalty for underpayment.
Note that the above is how much you should withhold in order to avoid a penalty for underpayment of taxes. It is not the actual amount that you owe. The actual amount that you owe is calculated at the end of the year when you fill out your Form 1040. If you just have the minimum withheld, there is a good chance you will owe more tax at the end of the year. I cannot tell you how much tax you will owe at the end of the year, but you may be able to estimate it using this calculator:
http://www.dinkytown.net/java/Tax1040.html
Most states follow the same rules as the federal government for minimum tax payments, but you will have to check your state's specific tax rules.
Your employer payroll department should be able to help you with this information.
You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings
NONE, NOTHING, -0- ZERO amount is withheld from your net take home paycheck.The net amount that is on the paycheck that you have in your hand is your net pay for the pay period after all of the federal taxes and other necessary withholding amounts have been withheld from your gross earnings by your employer payroll department.You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings not from your paycheck.
All taxes should be withheld on earned wages. If a minor has less than the standard deduction in UNEARNED income then they will not pay any Federal Tax... the state and local taxes depend on the state and locality.
You NEVER do have any deductions for federal taxes or other items from your net take home paycheck when it is issued to you. The net amount that is on the paycheck that you have in your hand is your net pay for the pay period after all of the federal taxes and other necessary withholding amounts have been withheld from your gross earnings by your employer payroll department.You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings not from your paycheck.
on my w-2 the line where i should have federal taxes withheld has $0.00 and I want to know why
Your employer payroll department should be able to help you with this information.
You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings
NONE, NOTHING, -0- ZERO amount is withheld from your net take home paycheck.The net amount that is on the paycheck that you have in your hand is your net pay for the pay period after all of the federal taxes and other necessary withholding amounts have been withheld from your gross earnings by your employer payroll department.You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings not from your paycheck.
You do NOT have any amount withheld from your net take home paycheck after it is issued to you. The parts that are withheld from your gross wages, earnings before your net paycheck is issued to you is a prepayment of any possible state and federal income tax liability that you could have after your income tax return is completed correctly. If your income tax liability is less than the withheld amounts you will receive the over withheld amounts as a refund after you file your income tax return. You should get this information from your employer payroll department as they will be the one that would know how much FICA, federal income tax, state income, local taxes, etc they will have to withhold from your hourly pay or gross pay for the pay period.
All taxes should be withheld on earned wages. If a minor has less than the standard deduction in UNEARNED income then they will not pay any Federal Tax... the state and local taxes depend on the state and locality.
It should be listed as FICA. Listed next to Federal and State withholding, you'll also see FICA - that is your contribution to Social Security.
You should have received a Form 1099-G showing the amount of taxes withheld.Enter the amount of federal taxes withheld on 2008 Form 1040 line 62.If you had other taxes withheld, add them all together and enter the total on line 62.
You NEVER do have any deductions for federal taxes or other items from your net take home paycheck when it is issued to you. The net amount that is on the paycheck that you have in your hand is your net pay for the pay period after all of the federal taxes and other necessary withholding amounts have been withheld from your gross earnings by your employer payroll department.You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings not from your paycheck.
You NEVER do have any deductions for federal taxes or other items from your net take home paycheck when it is issued to you. The net amount that is on the paycheck that you have in your hand is your net pay for the pay period after all of the federal taxes and other necessary withholding amounts have been withheld from your gross earnings by your employer payroll department. You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings not from your paycheck.
You NEVER do have any deductions for federal taxes or other items from your net take home paycheck when it is issued to you. The net amount that is on the paycheck that you have in your hand is your net pay for the pay period after all of the federal taxes and other necessary withholding amounts have been withheld from your gross earnings by your employer payroll department. You should get the information from your employer payroll department if you really need to know the correct numbers or amount that should be deducted from your gross earnings not from your paycheck.
Although you may be able to, you shouldn't. Unemployment is taxable, just like wages and other income. Therefore, you should have federal and state taxes withheld just like you do for wages. I know you want the extra money because you're out of work, but you'll be in a bigger hole financially if you owe money for taxes because you didn't have enough withheld. The only reason it would be okay to change the amount withheld is if you were certain you'd get it all back because you have enough dependents, tax credits, and deductions to bring your taxes down to zero. If that is the case, you can talk to the employment department at the state where you're collecting it and they will have you fill out a form to change the amount of taxes withheld.