Q:

How much federal tax comes out of my paycheck?

A:

Quick Answer

The amount of federal income tax that comes out of a person's paycheck depends on the person's number of exemptions, salary deductions (such as health insurance), marital status and earnings. The person's taxable gross wages is equal to the person's gross earnings (wages before deductions) plus taxable fringe benefits plus taxable employer-paid benefits minus any pre-tax deductions.

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Full Answer

A person's taxable gross income and marital status will determine the marginal tax rate the person will have to pay. Although a person may have a marginal tax rate such as 28 percent and an income of $40,000, not all of the $40,000 in wages will be taxed at that rate. Due to the use of income brackets that each have their own tax rates, parts of it would be taxed at 10 percent, 15 percent or 25 percent. The federal tax brackets and rates can change on an annual basis.

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Related Questions

  • Q:

    What is the tax table?

    A:

    A tax table is a chart that displays the amount of taxes owed to the state or federal government based on a number of factors, such as filing status, exemptions, income and any amount of deductions. While there may be some variance, most states use similar charts.

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  • Q:

    What are some sample paycheck deductions?

    A:

    Typical paycheck deductions include the employee's portion of Social Security and Medicare under the Federal Insurance Contributions Act, known as FICA; federal income tax withholding, based on the employee's W-4 form; and state and local income taxes as applicable, notes SurePayroll.com. Other possible deductions include the employee's portion of medical, dental, vision, life and disability insurance premiums and payments to 401K, retirement or flexible spending accounts. Deductions for union dues and charitable donations are also possible, according to U.S. Trust.

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  • Q:

    What tax exemptions are there for senior citizens?

    A:

    Senior citizens can take advantage of tax exemptions and deductions available through the Internal Revenue Service that include deducting a portion of medical and dental expenses and exemption from paying taxes on profits from the sale of a home. Retirement plan contributions may also be deductible for senior citizens.

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  • Q:

    What are medical deductions?

    A:

    Medical deductions are qualified expenses that taxpayers can claim on their federal income tax returns to reduce their tax bill. While many medical expenses are deductible, taxpayers under age 65 can take the deduction only if their expenses exceed 10 percent of their adjusted gross income, according to TurboTax.

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