Questions tagged [withholding]

related to the practice, at times required by law, of deducting money upfront before paying the balance. Generally used in the context of taxes.

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3
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2answers
6k views

FICA was not withheld from my paycheck

Hello personal finance, I was filing my taxes for 2016 and I just found out that I transitioned from Non-Resident-Alien to Resident Alien around September last year by passing substantial presence ...
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2answers
809 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 ...
3
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1answer
2k 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 ...
38
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6answers
5k 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 ...
6
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1answer
3k 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 payments,...
10
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1answer
18k 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 ...
5
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4answers
3k 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 ...
5
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3answers
3k 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
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2answers
239 views

Is there a penalty to withholding more taxes at the end of the year?

Suppose that Bob realizes in November that he has severely underwithheld taxes and would have a large penalty due when he files. Since he works at a salary-paying job, he elects to increase his ...
3
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1answer
282 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 ...
2
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2answers
166 views

Avoiding withholding tax by selling shares before ex-dividend date?

Recently I sold 3006 DLS shares the day before the ex-dividend date. On the ex-dividend date, for the same amount of the sale, I bought 3052 DLS shares. I have therefore gained 48 DLS shares. So ...
7
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1answer
7k 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 ...
6
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3answers
3k views

How will my income tax vary throughout a year where my income fluctuated

I am in the USA: Will the income tax percentage change throughout the year if my (hourly) wage in the spring was low, then high in the summer, then in the middle of the start and end now in the fall? ...
5
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4answers
7k 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 ...
1
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1answer
1k views

H1B first time filing W4, should I file as Resident Alien or Non Resident Alien?

Please tell me whether I must file W4 as Resident Alien or Non Resident Alien? I entered the US on H1B in early June with family. I need to file W4 for withholding taxes. By the end of this year I ...
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3answers
153 views

Additional withholding

I have claimed 9 federal withholdings for the entire year and just switched back to claiming 0 August 1st as I should have done from the beginning of the year. I do not want to owe taxes so I have ...
0
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1answer
4k 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 ...
0
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1answer
600 views

Several cents difference in the actual and calculated “Withholding Tax” values

I have decided to check/calculate my salary in a spreadsheet. All the numbers align correctly, except the federal Withholding Tax. I have tried to use the Schedule 15, and Schedule 15A (Tax year ...