I am about halfway through a 3 month summer internship in Bellevue, WA. My pre-tax bi-monthly paychecks are ~$3000 (6k/mo). However, I pay ~$815 in taxes each paycheck. This comes to about 27% in taxes, which makes sense since I am being paid hourly what would equate to about 80k/yr salary. However since this is only a 3-month gig I will only be walking away with ~$18,000 pre-tax (~$10,800 post-tax) at the end of the internship.
I am a Utah resident and I plan to do my final year of my degree at my local university following the internship. The following 9 months I want to be minimally employed, focus on school, and live off the money earned. So, my yearly earnings will likely be well below $35k.
From each paycheck my taxes are broken down as:
- ~$190 : OASDI
- ~$45 : Medicare
- ~$580 : Federal Withholding
It seems that a 27% tax for <30k/yr of earning is pretty steep. I understand that in ~9 months I can file a tax return and will probably get a large return, but I need every penny I can get now since I am planning to live off it when I return to Utah. I am not a dependent of my parents.
a) Can I somehow lower my taxes since I wont end up making very much money this year? (I think I only put 1 exemption on my W4)
b) Can I get money I was already taxed back before "tax season"?
c) Are all these tax percentages correct and am I not actually being overtaxed?
d) Will I owe the state of Utah a ton of income tax when I return?
FYI: I don't know much about the tax system at all. I just confusingly fill out boxes on the W4 and 1040 and such and am usually taxed appropriately.