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Hello again! :-) I just visited the IRS wesite and used the withholding calculator, which told me if I earn $108,000 and I have $13,000 contribution to a tax-deferred retirement plan, my estimated federal tax is going to be just over $19,000. Well golly-gee-willikers! I'm already at $11,052. (I also looked for the tax tables but I couldn't find them; link, anyone?) It also told me at my current rate of withholding, based on what I entered from my last paycheck, I'll have paid $6700 too much in federal taxes.

If you've had $11K withheld through the end of July and your income is relatively level throughout the year, you will only have just over $19K in total withholdings...right about where you expect your liability will be.

Withholding tables can be found in IRS Pub. 15, Circular E, Employer's Tax Guide, www.irs.gov/pub/irs-pdf/p15.pdf.

Of course, I don't wish to do that. But I work strictly on commission, and as far as I know, I am taxed at the highest earning level no matter what my W-4 says. Does anone know what I might be able to do to get some of my money before next February? (As in, getting it in my 5 remaining paychecks for this year?)

No, you are not withheld at the highest level regardless of what your W-4 says. Either your employer follows your W-4 or, under certain circumstances, applies a flat 25% withholding rate to your payments. (The top rate is currently 35%). If your employer follows the withholding tables (ie, follows your W-4), you can file a new W-4 showing more withholding allowances. If your employer uses a flat 25%, there is nothing you can do other than file an early return for a swift refund.

Ira


If it makes any difference, I live in California (hahaha...which means I should have the federal gov't hold a little more of my money than necessary, just so I can send that "return" directly to the state of CA when I find out I owe them money, like the past 2 years).
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