This is my first post on the money board so bear with me please.
I am a junior in college and recently started a new job as an accounting intern at an oil and gas company. I noticed on my paychecks that it seems that not much federal and state tax is being withheld.Where as last year I worked only 8 months making about $12000 and had roughly $1200 in federal taxes and $300 in state(Louisiana) taken out. I have listed 1 exemption each for Federal and State. I will most likely not exceed $15,000 in income this year seeing as I am only working part time while in school.
Poodlebrain LSU Fan Way Right of Rex Member since Jan 2004 14229 posts Online
re: Tax exemptions (Posted on 3/2/13 at 12:55 pm to Fat Andy)
The answer to your question requires additional information. Do your parents still claim you as a dependent on their tax return? How are your college costs being reported on tax returns?
Withholding tables are created using the assumption that the employee will claim themself as personal exemption and claim a standard deduction. So that is approximately $9,700 of income that will not be subject to tax. Then the tables take into account the lower tax brackets and such. So the 10% withholding rate you've been subjected to is probably about right.
re: Tax exemptions (Posted on 3/2/13 at 2:01 pm to Poodlebrain)
sorry bout that. No, my parents do not claim me. I am 28 years old and single with no dependents. About 75% of my tuition is paid with a Federal Pell Grant. I only paid about $1200 last year out of pocket for tuition.
my first couple of checks at my new job seem to be only taking about 4% Federal taxes and 1% State.