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Werewolfdad t1_iyaoxv6 wrote

Reply to comment by AltReality in Federal taxes are not being taken out of my paycheck... by AltReality

Owing $400 is about perfect. What is your income?

Do you get paid the same every week?

Do you have health insurance or 401k contributions taken out?

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AltReality OP t1_iyap4qx wrote

$63,060 Salary

no 401k contributions but yes Health Insurance is taken out every check

and I get paid the same every check

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Werewolfdad t1_iyapl5p wrote

> Health Insurance is taken out every check

How much? And how often are you paid?

Any other pension or other pretax deductions?

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AltReality OP t1_iyaqh91 wrote

Medical 3 is $231

Medical Memo 3 is $549

I have no idea what the difference is.

No other pension or deductions.

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Werewolfdad t1_iyaszwh wrote

Yeah then per /u/rnelsonee ’s math, you have no tax liability (and may actually have a negative federal tax rate)

Zero withholding is appropriate

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rnelsonee t1_iyaqg2e wrote

Yeah, so with medical, it's going to go to $0.

The math if you had no pretax deductions:

You make $63,060. Subtract $25,900 for the standard deduction and your taxable income is $37,160. You pay 10% on the first $20,550 ($2,055), 12% on the rest, $16,610 ($1,993) for a total of $4,048. Subtract $4,000 to Child Tax Credits. Divide $48 by 52 to get $0.92 withheld per paycheck.

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