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Albert Pujols · Aug 30, 2006, 06:23 AM

This is probably a stupid question but I'm new to this whole taxes thing. Currently I'm working full time (40 hours) and around 23% of my earnings go to the government. Next week I am going to start working part time (15 hours) once school starts. Because I'm only working part time will the same percentage of my earnings go to taxes, or will it be less?

Doofy · Aug 30, 2006, 06:49 AM

In general, it doesn't go on the amount of hours but the total yearly pay. If you work less, you'll probably be paid less so you might drop into a lower tax band.

bstone · Aug 30, 2006, 06:52 AM

get a lawyer and a CPA

TETENAL · Aug 30, 2006, 07:07 AM

Originally Posted by Doofy

In general, it doesn't go on the amount of hours but the total yearly pay.

Which means he will probably get some of the taxes he paid in his full time job back.

Dork. · Aug 30, 2006, 07:44 AM

There are two issues here: how much you really owe, and how much will be withheld.

I'm making all the numbers up here to illustrate my point (except one. Can you guess?).

As Doofy said, taxes are based on your total yearly income, on a sliding scale. The first $10K may have no tax rate at all, then the next $20K may get taxed at 5%, then the next $20K gets taxed at 10%. But if you make $50K, in my example you would pay nothing on your income up to $20K, $1K (5%) on your income from $10K to $30K, and $2K(10%) on your income from $30K to $50K. You'll pay a total of $3K, or 6% of your income.

But each job generally witholds taxes as if that's the only income you're going to get, and doesn't know about any other work you might have had. For instance, Albert, according to CNN.com you're due to make $14 Million this year in your full-time job. I think it's safe to say that you're firmly in the highest tax bracket. But when you take your campus job in the offseason, they will likely withhold your income as if that job was your only source of income, so thay won't withhold very much. But as far as the Government is concerned, that income is added with the $14M that is already in the bank for your losing-the-MVP-to-Carlos-Beltran season, and you need to pay much more in taxes than would ordinarily be withheld. When we're talking numbers this big, if you under-withhold you're subject to penalties, even if it's because you're working two jobs and the base withholding for them wasn't enough.

But thew government always over-withholds, so for ordinary students who don't moonlight as MLB players, odds are the additional withholding from your full-time job will cover any shortfall in your part-time job. If you're uncertain, though, just find a copy of this year's tax software, like TurboTax. It has a tool where you put in your year-to-date income and withhilding information and some predictions for the rest of the year, and tells you whether you need to withhold more. It will even print the form to give to your employer for you if you need to increase your withholding....

Cody Dawg · Aug 30, 2006, 08:05 AM

And I thought this might be about property taxes...

Just got that bill...

residentEvil · Aug 30, 2006, 08:47 AM

Originally Posted by Cody Dawg

And I thought this might be about property taxes...

Just got that bill...

Oh, I've had mine for a couple months; it is due tomorrow (the 31st). Not even close to having it all. Will take a penalty on that one.

Cody Dawg · Aug 30, 2006, 09:00 AM

We have from November to March to pay ours. Ours are going to be about $2K because it is the first year we're in our new home and we only pay taxes on the lot and not on the home. Next year, though, taxes will go to $8,000 or so.

ghporter · Aug 30, 2006, 09:01 AM

Witholding is based on the amount in EACH PAYCHECK. So if you have the maximum witheld (it sounds like you're pretty close) then each time your check changes (work 40 hours, work 35, work 50...you get the idea) not only will the amount witheld change, but the percentage may as well. It's based on a formula that's pretty well explained on the W-4 form. And as Dork. says, each employer you have will withold as if they were the only employer (that's part of the rules), so it's up to you to adjust your W-4 form to make it fit your situation.

If you're single and claim no deductions, the employer will withold a lot. If you claim the deductions you're entitled to, they'll withold less. Either way, until you get a feel for how your actual annual income will relate to your tax in April, it's probably a good idea to use fewer deductions than you're entitled to, so they withold at least enough-multiple jobs that are UNDER the limit for witholding can get you enough income to make you wish you'd had a LOT more witheld, come tax time.

I am, of course, as most seem to be, assuming you're in the States...

ghporter · Aug 30, 2006, 09:03 AM

Originally Posted by Cody Dawg

And I thought this might be about property taxes...

Just got that bill...

That's something I let my mortgage company handle. And it's been something of a chore to keep up with, because our local taxing entity is not what you might consider 100% professional and well organized... Plus I got to apply for a discount for my veteran status and that messed them up too... Do NOT get me started!

residentEvil · Aug 30, 2006, 10:02 AM

Originally Posted by Cody Dawg

We have from November to March to pay ours. Ours are going to be about $2K because it is the first year we're in our new home and we only pay taxes on the lot and not on the home. Next year, though, taxes will go to $8,000 or so.

mine is $3k for the summer taxes (due tomorrow) and $1k for the winter taxes (due sometime in february). 'm also bad with money and have just gone thru a seperation...so a big chunk of money is now gone. thinks like mortgage, food and bills come before the taxes (that i have a couple more months to pay albiet with a penalty).

blah

Cody Dawg · Aug 30, 2006, 10:31 AM

Wow to both of ^^^ you.

ghporter - good for you for keeping those buggers in line with your taxes. I didn't include it in the mortgage this year because of the way the mortgage company established what we would pay - then supposedly (SUPPOSEDLY) would send a check back to us if we overpaid. YEAH. RIGHT.

They just sold our house loan/mortgage so when would we have gotten that money back?

Plus, they wanted to charge us the full amount that included the house and the property and not just the property for the first year per state law.

residentEvil - you pay summer taxes AND winter taxes?

residentEvil · Aug 30, 2006, 10:40 AM

yup; property taxes are divided into two bills. a summer and winter. i think all of michigan is like that.

Dork. · Aug 30, 2006, 10:40 AM

Originally Posted by Cody Dawg

residentEvil - you pay summer taxes AND winter taxes?

I pay school taxes in September, Town taxes in January, and also Village Taxes sometime in the Spring (Can't remember the exact month). All three bills constitute my Property Tax.

itai195 · Aug 30, 2006, 12:23 PM

Check out paycheckcity.com for some helpful calculators. If you know about how much you're going to make this year, including your part-time work, then it will tell you how to fill out a new W-4 when you start your part-time job.

turtle777 · Aug 30, 2006, 12:32 PM

Originally Posted by itai195

Check out paycheckcity.com for some helpful calculators.

Good stuff

-t

Albert Pujols · Aug 30, 2006, 05:11 PM

Thanks guys, answered my question!

SVass · Aug 30, 2006, 05:27 PM

Let me add that you can calculate your total tax that will be due and adjust your withholding so that you pay at least 90% of your final bill or as much as you owed last year. Then you will have to pay the remainder when you file! Most payroll software assumes that your current income will be your average for the year and can not adjust without you telling it otherwise. Do not over withhold and loan money to the government as they do not pay interest on the loan. If you want to ever get and stay rich, you must learn to manage your own money. sam