Does the frequency of payments affect the annual amount of taxes a person may pay? For example, biweekly vs. bimonthly.Thanks,Brett
Does the frequency of payments affect the annual amount of taxes a person may pay? For example, biweekly vs. bimonthly.No. It may affect withholding, but not your ultimate tax.Have you thought of taking a basic income tax course? Given the level of interest you've shown in withholding, you might love the real stuff.This gives me a chance to put in an early plug for the Volunteer Income Tax Assistance (VITA) program. VITA is an IRS-sponsored, community run effort to provide free tax preparation for the poor and elderly. In return for a promise to work 4 hours a week during filing season, you get good, free training in basic tax law.Anyone interested can get in touch with the local coordinator by calling 1-800-829-1040 and asking for the number of the VITA/TCE coordinator.Phil
I'm not sure that could happen since I don't get off from work until after 6p. Any idea what the hours are during tax season?Brett
Does the frequency of payments affect the annual amount of taxes a person may pay? For example, biweekly vs. bimonthly.No. When one works on IRS Form 1040 or its variants, what goes into the calculation is your annual pay from the W-2 that the company sends you in January, and that W-2 also has what was withheld from your wages for federal taxes. (I am ignoring other income and deductions--they are pertinent to taxes but not to this specific issue.)The amount of money withheld is specified in IRS Publication 15 Circular E, or Publication 15-T. It has tables for withholding for various pay periods: weekly, biweekly, semimonthly, monthly, quarterly, semiannual, and annual. It also has a "daily or miscellaneous" table for handling daily or handling pay periods that don't fit one of the above standard pay periods.So, while a little more money is withheld from each paycheck if paid semimonthly than if paid biweekly, if one multiplies the biweekly withholding by 26 it should be close to the semimonthly withholding multiplied by 24.But, again, the above deals with withholding, not the annual tax obligation. Nothing about the pay period goes on one's 1040, but the gross annual income and gross withholding for that year do go on Form 1040 and its variants. (These numbers are on the W-2 that your employer should distribute to you each January.)
Any idea what the hours are during tax season?Highly negotiable. There are weekday, weekday evening, and weekend sessions, depending on the area.Phil
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