Why am I paying 35% in deductions on $8056 in taxable wages?

[Anonymous]

Is this correct? What happened to marginal tax rate?

[Anonymous]

withholding is NOT tax.

That said, I'm not even sure what you are calling withholding is withholding. I have a feeling that 7.65S% is medicare and social security. If it is, then you are having 27% withheld.

Assuming that you make about $210K, that would be about 20-22% federal and 5%-7% state, which is about right (the federal is right for the marginal tax bracket, but doesn't consider that most of your income is taxed lower).

Either way, talk to your HR department and they can show you how to calculate it.

[Anonymous]

Is this a bonus or other check that is larger than your usual paycheck? If so, they are likely taking out the amount that would be taken out if this amount represented your regular paycheck, rather than just being more of a one-off payment.

[Anonymous]

You've made it! Now you can "pay your fair share" as they say.

[Anonymous]

Anonymous wrote:withholding is NOT tax.

That said, I'm not even sure what you are calling withholding is withholding. I have a feeling that 7.65S% is medicare and social security. If it is, then you are having 27% withheld.

Assuming that you make about $210K, that would be about 20-22% federal and 5%-7% state, which is about right (the federal is right for the marginal tax bracket, but doesn't consider that most of your income is taxed lower).

Either way, talk to your HR department and they can show you how to calculate it.

That's exactly right. You can elect to withhold less by filling out a worksheet for your W-4.

And to the "fair share" poster, yeah that's how a society works. We pay taxes and old people don't starve anymore, they have access to health care, and we get nice things like roads and infrastructure and national parks and (too much) military spending. You are free to move to a desert island without taxes anytime you want.

[Anonymous]

If that top line amount is your usual paycheck and it includes your 401k deduction and health insurance, it may not even be enough.

FICA - 7.65%
State - 5-9%
Marginal rate - 10-35%
Healthcare: 200-600$

[Anonymous]

Is some of that retirement withholding, health insurance, etc....?

[Anonymous]

Anonymous wrote:If that top line amount is your usual paycheck and it includes your 401k deduction and health insurance, it may not even be enough.

FICA - 7.65%
State - 5-9%
Marginal rate - 10-35%
Healthcare: 200-600$

Does not include tsp. Does include health insurance premium (BCBS 104).