related to the practise at times required by law to deduct money upfront before paying the balance. Generally used in the context to taxes.

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1answer
71 views

Would falsely claiming W-4 exempt status?

I have ~60K coming from my employer as supplemental wages If I get this in lump sum, the tax withheld would be around 40%. My usual tax rate is about 25%. I know I would get much of that extra tax ...
6
votes
2answers
211 views

How is federal tax withholding calculated per paycheck?

I just started at a new company and received my first paycheck. It included a signing bonus, which of course made the paycheck much higher than a normal one will be. The fed withholding amount on the ...
7
votes
2answers
761 views

Is there a way to get more money monthly and not a big tax return, but not owe?

I am about to purchase a house and our realtor told us that most people change their w4 so that they get a bigger paycheck and no tax rfund. My question is complicated (or at least to me). What can we ...
5
votes
4answers
1k views

How to minimize over-withholding of taxes

I want to lower the amount of taxes I pay in a year. Currently I claim 1 federal and IL allowances Additional amounts deducted for FED and State (ILLINOIS): $0.00. I'm single and don't have any ...
3
votes
1answer
92 views

W4 & withholding taxes for self-employed spouse

My wife and I live in the SF bay area. My gross income is $320,000 and my wife's is $38,000. My wife is employed as a contractor though and gets a 1099 instead of W2. No taxes are withheld from her ...
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1answer
32 views

Filling up W8-BEN-E PART III

I am a citizen of India, never travelled or worked in the US ever. I have registered a Pvt Ltd in India for doing business with a US-based client. I registered my company in Dec 2015. I read up and ...
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2answers
55 views

Advantages of Tax payments v Withholding for Capital Gains?

I expect to sell my second home this year and make a profit, therefore I will owe Long Term Capital Gains. Putting that into TaxCut software when planning tax for next year it suggests a fairly small ...
4
votes
1answer
84 views

Taxes and withholding on unpaid salary

I work as a consultant (1099) for a startup that has not paid my bills since June. Since I have not had any income I have not paid withholding since then. How do I handle my US personal income taxes ...
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2answers
63 views

Withhold additional amount instead of claiming

I'm a grad student and at the beginning of each semester the university adds the cost of my insurance into my monthly income. The problem is that this causes too much money to be withheld, resulting ...
6
votes
1answer
286 views

How can I make a one-time income tax-prepayment to the US Treasury?

I am a bit confused over the rules and requirements for individuals (and not businesses) making income tax-prepayments to the US Treasury. For instance, I've read that you can make quarterly ...
1
vote
1answer
128 views

Computer-readable IRS tax tables

I'm looking for downloadable tax rate tables in an import-friendly format (CSV, TXT, XLS, XLSX, XML, etc.). I've searched the IRS website but can't find anything besides the PDFs. Ideally, there ...
0
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1answer
133 views

W4 Two-Earners Worksheet Divide By Number of Pay Periods Remaining?

I'm trying to fill out a W4 for a new job, and am a little confused at the two-earners section (as I have been in the past). The very last step (line 9) says to divide the amount of withholding needed ...
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1answer
2k views

What do I tell the payroll company so that I can put 100% of my salary into a pretax 401k?

My spouse works part-time and qualifies for a 401k. She will make less than the $18,000 plus $6,000 catch up limit. So we want to put 100% of her earnings into the 401k. We understand OASDI and ...
4
votes
1answer
61 views

Did not file W-8BEN but received dividend income from US stocks and zero withholding tax

I am an Indian citizen who worked in US for some time and returned in 2002 to India. I last filed a 1040NR return in 2002 and after that did not file 1040NR. I just realised that I have been receiving ...
0
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0answers
75 views

How to be exempt from backup withholdings

I have dual citizenship -- US and other -- and I'm living abroad. What form do I fill out so the paying company will not take out backup withholdings?
5
votes
1answer
633 views

Income tax withholding for single person vs. married person?

Page No: 45 of this IRS publication http://www.irs.gov/pub/irs-pdf/p15.pdf gives the Percentage Method Tables for Income Tax Withholding. I am married, but my spouse works as well. In my case, will ...
3
votes
1answer
69 views

Is it ok to stop witholding if this year's witholding is greater than last year's tax owed, which was nothing?

My understanding of the underpayment penalties is that generally you are exempt from penalties as long you pay either 90% of this year's tax owed through witholding, or 100% of last year's tax owed, ...
0
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1answer
239 views

H1B First Time filing W4

I have traveled on H1B in early june with family. I need to file W4 for withholding taxes. Please help me if i have to file W4 as Resident Alien or Non Resident Alien. I have never stayed in USA ...
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1answer
1k views

How to fill out W4 correctly when I have two jobs?

I have two jobs and after completing my taxes I checked my W4s. I used the IRS withholding calculator and it recommended 1 allowance for each job, since I am Single. Each W4 for the jobs has an ...
3
votes
2answers
2k views

Underpaid federal tax by $5K in 2014 when claiming 0 with very “standard situation” (married filing jointly). Why?

Assumptions If I look at the tax brackets for 2014, if you're a couple filing jointly you have to have an AGI of more than 178,700 to start to see federal tax savings over if you were both not ...
5
votes
4answers
2k views

How are bonuses taxed? Why is withheld amount not same as final amount?

I have not found any clarity looking at a lot of search engine results and articles. Most articles state that there are 2 possibilities, that taxes from bonuses can be withheld at a flat 25% rate, or ...
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vote
0answers
99 views

Is interest from US Savings Bonds subject to nonresident alien tax withholding?

A person received some US Series EE Savings Bonds when he was a child. He was always a nonresident alien for US tax purposes and he is not from a treaty country. The Bonds matured in 2001 and has ...
1
vote
1answer
98 views

Do I pay withholding tax on a US company trading on TSE

I am talking about Cenovus energy:TSE:CVE It trades on both NYSE and TSE. If I buy it on TSE and pay in CAD, in my TFSA, do I still pay the 15% withholding tax, that cannot even be recovered using ...
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votes
2answers
56 views

Is a child also a dependent in IRS withholding calculator?

I am trying irs.gov website's withholding calculator. I am confused with this page: . I have one minor child. Should I mention her as dependent here, "Select the number of dependents (other than ...
0
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1answer
592 views

My medical insurance was withheld post-tax instead of pre-tax, what can I do now?

My employer was supposed to be withholding my medical insurance pretax. When I got my 2014 W-2, and tried to claim my insurance as a deduction on my taxes, it stated I could not claim pretax insurance ...
5
votes
1answer
212 views

Indian resident owning dividend-paying shares in company based in France: Can I save on withholding tax?

I am Indian and staying in India. I am holding stocks/shares of a French company which is listed on the Paris stock exchange. Every year, the French company declares dividend on the shares, and on ...
5
votes
1answer
679 views

Why a federal tax withholding of 25% when previous federal withholding tax was 8.9%?

I did some contract coaching work for a university and received a one-time payment for the services rendered over 3 months. The amount taxed for Federal Withholding was a staggering 25%. For someone ...
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vote
0answers
47 views

Nanny Tax Withholding threshold

We hired a part time nanny in May. We expected to exceed the $1900 threshold and started deducting FICA taxes. Now at the end of the year, we've payed her less than $1600. Must I still file a w-2 for ...
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vote
2answers
75 views

What method can be used to estimate additional withholding so no taxes are owed on filing?

For higher income households, standard withholding is insufficient to pay the income taxes owed. For example, one family claimed 4 people last year and the two income earners each did M-0 yet still ...
1
vote
2answers
69 views

What is RRSP Withholding Tax?

I am confused by the "Withholding tax" on an RRSP withdrawl. If I withdraw funds from my RRSP, am I subjected to a 10%-20% with-holding tax? Does this basically mean that my money will be reduced by ...
3
votes
2answers
3k views

W4 --Additional amount withheld from my paycheck

I earn around 85k and my husband around 100k. Last year we paid around 5000$ in tax. Now my husband says to include 2500 as my additional withheld money from my each pay check. What does this mean? ...
30
votes
6answers
4k views

How can I adjust tax withholding so that I don't get a large Tax Refund?

I'm a few years out of college now. I've filled out my W4 accurately and I still get a tax refund every year of a pretty sizable sum. The thing is, I have student loans and I would much rather have ...
3
votes
1answer
191 views

Improper withholding of FICA from student: Getting a refund

A friend of mine in the U.S.A. works for an employer who, we believe, improperly withheld FICA (should have been exempt: they are a student at the same university that they work) due to an ...
0
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0answers
152 views

How to make sense of results from the IRS W-4 withholding calculator?

After entering all my data into the calculator, attempting to get a handle on how much we are going to owe next year, I received this summary, which makes no sense at all: If $947 will be due when I ...
3
votes
1answer
893 views

Am I eligible for a refund of Social Security and Medicare taxes for when I was on an F-1 visa?

This question is for a friend. They came to the United States as a student in 2009 on OPT/F-1 visa. In November of 2011 they started to work for the Department of Defense as a teacher. They had Social ...
8
votes
1answer
5k views

How does tax withholding work for capital gains of selling stock?

I am new in the United States, and before I moved here I did not deal with the concept of tax withholding and capital gains tax. I understand my employer withholds part of my salary to pay taxes, and ...
2
votes
2answers
571 views

Pay taxes through employer payroll withholding for 1099 work?

I have a regular, salaried position where my employer withholds my taxes as per normal. I also do some 1099 contract work on the side for folks, where no taxes are withheld. Can I just adjust my ...
2
votes
2answers
488 views

How do I fill my W4 allowances as a foreign student with two internships this year?

I'm a foreign student that will be in the US for two internships. I just started one in the summer and will be doing another one in the fall. I have to fill in my W4 and I'm still somewhat lost. I ...
5
votes
3answers
4k views

Is this the correct math for estimating federal taxes using marginal tax brackets?

(I updated this because I think I wasnt making myself clear in the first part of the question and I clarified what I'm trying to do. I'm just looking to use marginal tax brackets to derive a good ...
1
vote
1answer
56 views

Can I claim a full tax deduction in India of the entire amount withheld from my U.S.-source income?

I am an Indian citizen resident in India. Say I earn $1000 from a US source. They withhold 30% since I haven't provided an ITIN in my W8ben. So I get $700 in hand. I understand that I have to report ...
1
vote
1answer
441 views

Double-Taxation of Royalties paid for in Korea to a US Company

A Korean-based company is paying royalties to my company base in the US. The US-Korea Tax Treaty has set the Korean income tax rate at 15% for these. In addition, I pay a 10% local income Korean tax ...
3
votes
1answer
399 views

100% Contribution to 401K / Payroll Taxes

This is actually a followup question to a previous post: Tax implications for a 100% 401k contribution limit I mistakenly posted it there first as an answer. I'm new here ... Sorry! My question ...
1
vote
1answer
6k views

W-4 Allowances - IRS Calculator

I am currently utilizing the IRS Withholding Calculator to figure out what my allowances should be (note: NOT exemptions). My current situation: First half of year up to June 30, I earned 11,700. The ...
3
votes
2answers
1k views

Tax withholding on ESPP discount

I recently enrolled in my company's employee stock purchase plan (ESPP) with the maximum-allowed 10% of my salary. I get the stock at a 15% discount relative to the purchase date (no look-back ...
5
votes
1answer
4k views

Is it a good idea to increase W4 allowance claim in order to fully fund 401k?

My company matches my 401k contributions, up to a limit, 6%. I don't currently contribute the max, but I would like to start. I know when I increase the W4 allowances, my take-home pay goes up, and ...
2
votes
1answer
172 views

Can I just file a 1040-ES?

I got married last year, and made some reasonable estimates of what my taxes would look like in 2012, the first full year of being married. However, a few things have changed and some of the ...
6
votes
1answer
368 views

Lower withholding based on my calculations. How to get employer to change withheld amount?

My employer will withhold taxes from my paycheck as if I have been working at a particular salary range all year. Basically: pay period = (base salary / 2080 hours) * 80, and taking all taxes as a ...
4
votes
3answers
56k views

$65000/year or $2500 every two weeks: If I claim 3 exemptions instead of zero, how much would my take home pay be?

I live in Pennsylvania. They take out about $750 per paycheck as of right now. I recently changed the allowances that I had from 0 to 3. It had no effect whatsoever on my take home pay. And I had ...
12
votes
3answers
1k views

What is the best way to calculate the optimal tax withholding from my paycheck?

My tax refund for this past year (United States) was much higher than I would have liked it to have been. I'm single and have no dependents. My tax refund was about 4% of my salary. Is that normal? ...
5
votes
2answers
3k views

W4 withholding for “Married filing joint” filing seems higher? Why?

My husband took a new job recently and is making 125K in salary in California. I make 65K. When we were filling his W4 (married filing joint), the additional withholding on his W4 came to 'additional ...