1 Answer
It depends on which tax bracket your annual income would be in, if multiplied by the number of weeks that amount would total if you earned that amount for 52 weeks.
The amount withheld is not the same as the tax DUE at the end of the year. You tax due is based on your total annual income AFTER your allowable deductions
I.E. Say you earn $1,000 a week FOR 52 WEEKS. You total tax due AT THE END O F THE YEAR, would be on $52,000
If say you earned $2,000 in one week you withholding amount would be based on an annual amount of $104,000, even though you annual income would only go up by $1,000 to $53,000
One is best served by claiming one MORE dependent than one has, which you can legally do.. If you are married and have two children, claim 5 for withholding, not four and certainly not three since that amount witheld will be closer to you actual tax due at the end of the year.
Your refund will be lower but that is better than LENDING the US Treasury your money for a whole year, on which they will not pay you any interest.
12 years ago. Rating: 1 | |