I live in MA, but work in NH with state tax withheld?
As a MA resident, MA will tax your world-wide income from all sources. It does NOT matter that you work in NH and that NH has no tax on earned income. You owe the MA tax, and possibly penalties and interest for underpayment of tax. If your employer isn't able to withhold MA income taxes from your wages, you will need to start making quarterly estimated tax payments to MA using MA Form 1-ES. Send in 1/4 of what you show as your tax liability on your 2008 MA return to avoid penalties and interest next year. The first payment is due on April 15 with subsequent payments due on June 15, September 15, and January 15, 2010. There is no need to file a NH return unless you had NH sourced unearned income such as dividends, interest, capital gains, etc. As noted above, NH does not tax earned income. It would make no sense to contact the IRS as this is a State issue, not a Federal one. The IRS has no dog in this fight and cannot help you.
Find the state tax withheld per pay period(business math)?
This is a straight-forward problem. The only trick is in setting it up correctly. 1) No tax is pad on the amount of the personal exemptions, so subtract that from the Annual Salary: 18750 - 3000 = 15750 that tax will be paid on. 2) On the first thousand earned, the tax is 1.5%, so 1.5% * 1000 = $ 15.00, and tax still needs to be paid on the $ 14750 remaining. 3) On the next two thousand earned, the tax is 3%, so 3% * 2000 = $ 60.00, and tax still needs to be paid on the $ 12750 remaining. 4) On the next two thousand earned, the tax is 4.5%, so 4.5% * 2000 = 90.00, and tax still needs to be paid on the $10750 remaining. 5) On the remaining amount, the tax is 5%, so 5% * 10750 = 537.50. So, the total tax paid for the year is 15 + 60 + 90 + 537.50 = $702.50 6) Divide the annual tax by the number of pay periods to get the amount of tax that will need to be paid each pay period, so 702.50 / 26 = $27.019, rounded up to $27.02
Tax rate on tips in Colorado?
I know how to do basic taxes, but I have a weird thing that has come up: My husband's job just started taxing his tips (we were surprised they haven't been as he used to be a waiter, etc). This week was the 1st the employeer took out the taxes. In the column for taxes, it says they took out the exact same amount for taxes in "tips reported" that he made in tips (there was an additional $2-something for "tips FICA" so I am worried). I can't find online what the Colorado tax rate or federal tax rate on tips is. My husband is claiming 2 since I don't currently work. If anyone can help besides sending me a link, or tell me if I am or am not crazy....... I did some math. We have been paying about 10% in taxes. Now there is this new number. We expected it to be high, but I never thought the number in the "withheld" column would equal that in the "earned" column (and the company has not been tracking the tips before-it's one of my husband's new jobs!). Now our tax rate (I only have 1 week to base this on) is 19%. It is the same percent (about) my husband was paying as a waiter. But I can't see any tax rate where he would lose all earned tips. Or is that really the case and we should decline the tip income? 10 points if you can help-whether a link to the Colorado site that tells me the real tax details or if you know the answers! Thanks!
How can i calculate taxes withheld on paycheck when working and residing in different states?
Your employer will withhold taxes for the state where you work. They are not required to withhold for any other states. (A few states with reciprocity agreements may be different, but NY and NJ have no such agreements.) When you work in one state and live in another, you file a non-resident return in the state were you work and only pay tax on the income from that state. You then file a resident return in your home state and pay tax on your world-wide income. Your home state then gives you a credit for the taxes paid to any other states, equal to the lesser of the tax paid or what your home state would have collected on that income. NY income tax rates tend to run a bit higher than NJ income tax rates so for most folks in your situation the taxes paid to NY will cover your NJ tax liability completely. You can run a set of dummy returns using your numbers to verify that, or you can run the numbers at http://www.PayCheckCity.com for a reasonably close estimate. If you pull up short on NJ income taxes, you may have to make quarterly estimated payments to NJ to avoid a large tax bill and penalties at tax time.
To start, overtime is not taxed at a higher rate. It merely looks that way because of how withholding works.The rules surrounding withholding are published in IRS Publication 15, also called Circular E. Here’s a quick primer:Withholding is structured under the assumption that each paycheck is an average paycheck for you. So let’s take John Q. Taxpayer for our example. John makes $52,000 a year, and is paid weekly. Basic math tells us that his weekly paycheck is $1,000. Assuming John is single and has zero allowances on his W-4, his employer will withhold $154 from each paycheck. Over the course of the year, this will amount to a total withholding of $8,008. Assuming John takes the standard deduction and has no other credits/taxes, his tax liability would equal $6,145; giving John a refund of $1,863.Now, let’s tweak the scenario for a minute. Imagine John works overtime one week and is getting a paycheck for $2,000. His withholding would then be $920. This would make sense for a taxpayer with a $104k salary and a tax liability of $19,477. Now, the system has no way to know whether this paycheck is abnormal, or average. Because it is impossible to know if the paycheck is abnormal, the IRS must assume it is an average paycheck and directs the employer to withhold accordingly.If the system did not function like this, it would result in a great many people having unpleasant surprises come April 15. The small amounts of overtime add up and can potentially turn what should have been a $1,000 refund into a balance due.TL;DR: In order for the system to function, it can only assume that the paycheck is an average paycheck for the year and withhold accordingly.If you are extraordinarily disciplined, you can send in your estimated tax payments quarterly in lieu of withholding; however, this option is intended more for self-employed taxpayers, not wage-earners.
Income taxes will be directly deducted from your bank account in the US in only one situation: you have an unsatisfied back tax obligation and have failed to cooperate with IRS collection efforts. In this specific situation, the IRS may elect to levy your bank accounts in order to collect the unpaid tax due. Otherwise, it’s your responsibility to voluntarily pay your income taxes, federal, state, and local, at the time they are due according to the relevant law.In the United States, taxes are not normally directly extracted from your bank account without your prior consent (and the IRS does not, in any case, do demand drafts). For most people, their employer withholds a portion of their pay and sends it to the IRS as an estimated payment toward federal income tax, and (if the state has a state income tax) to state tax revenue authorities. These withholdings are computed by the employer based on information the employee provides to the employer.If you live in Colorado and have told your employer that, your employer will withhold estimated taxes as is appropriate for an employee who lives in Colorado, based on that information. If you then move to New York and inform your employer that you have moved, your employer will switch to withholding according to the procedures appropriate for an employee who lives in New York. (It would, I note, be somewhat uncommon to be able to move from Colorado to New York and keep the same employer, but it can happen.)If you have income that comes from sources that aren’t employment, it’s your responsibility to estimate your tax liability to the federal government and to the state or states in which that income is earned, and make the required estimated tax payments during the course of the year.Note also that federal taxes are the same no matter what state you live in. It’s state taxes that vary from state to state; indeed, some states don’t have a state income tax at all.
The IRS issues Individual Taxpayer Identification Numbers (ITINs) to individuals who need one for US tax purposes but who do not have, and cannot get, a Social Security Number. This is done by filing Form W-7. The application for an ITIN must include:Form W-7;A completed tax return for which the ITIN is required;Either the original document, or certified copy of the original document from the issuing agency, that supports the information listed on the W-7.The supporting documentation provided with the W-7 must be sufficient to establish both foreign status and identity - for foreign nationals, a foreign passport is sufficient to cover both.Any alien individual with a tax obligation to the United States, and who cannot get a Social Security Number, should request an ITIN. Note that there is a specific category on Form W-7 that is selected when the individual lives in the US but is not legally authorized to work in the US.That's how an undocumented individual would be able to pay income taxes - request and receive an ITIN, and then file tax returns.FYI, employers won't give W-2s to undocumented workers not because the employee doesn't have an SSN, but because the employee can't provide the employer with proof that the employee is legally authorized to work in the US. In this case it would be up to the employee to reconstruct the earnings and report the income accurately. Note that the employer should absolutely not under any circumstances be reporting wages paid and taxes withheld under a known-to-be-false SSN.
If you itemized deductions on your 2011 return and deducted your Hawaii state tax withheld, all or part of your refund may be taxable. The calculation is a little complicated, but generally if your refund was less than the difference between your itemized deductions and your standard deduction, all of it is taxable; otherwise only the part that reflects the difference between your itemized deductions and your standard deduction would be taxable.