Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: KATinChicagoland Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120800  
Subject: Am I paying too much in taxes? Date: 11/21/1997 8:03 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Scott, if you are simply wondering if the withholding on your paycheck is out of whack, then I agree with the earlier reply: it doesn't appear to be. But there are some other points that can be made.

If you make more than the social security wage base (around $64,000) as I recall), you do not pay the non-hospital portion of the social security tax after you reach that total in income. When you exceed that amount, your withholding suddenly goes down and you get a bigger paycheck. If you switch employers during the year, you may overpay your social security tax. In that case you need to claim a credit for it when you file your income tax return.

As to the income tax withholding, you should be aware that the amount withheld does not necessarily match the amount you owe. It's possible, depending on your marital status, dependents and other factors, that you are having too much withheld from your pay. That's not necessarily a terrible thing because it means you'll get a refund. My point is simply that the fact that you are having 41% withheld from your paycheck doesn't necessarily mean you are paying 41% in taxes. Your real tax rate may be lower.

KAT in Chicagoland
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.