What effect is there if I raise my tax exemptions on my W-2.?  As a %, how much money would be saved?
484715
Go to quicken.com. They have financial calculators for free. You can enter your paycheck info as it is and then with your new scenario.  That will show you how it will effect your net check.
34996
You are best waiting for the w-2 to come in.  But you can get a really good estimate of how your taxes will look in the meantime w/ the info you have.  The w-2 will have additional information that you will need on the tax forms and you cant file till you have that info.
247979
First of all, the number on the w-4 Form is NOT dependents; this number is called a "withholding allowance" and can be any number you want.  The higher the number, the less will be withheld from you income for taxes and such.  A withholding allowance of "0" will have the most withheld; 99 will have the least. The idea is to adjust that number so that by the end of the year you will have had more or less the correct amount withheld to cover your income tax liability.  If you find you had too much withheld, then file a new W-4 with your employer and increase the number; conversely, if you did not have enough withheld then lower the number. Interestingly, if you had no Federal tax libility for the prior year and reasonably expect to have none in the current year, you can claim "exempt" and have NOTHING withheld.\n\nYou probably have no recourse at all with your employer, they simply screwed up.  You are still liable for tax in the end, so make sure they get it right.
756433
If you are a US citizen, it's the same rate whether you are retired or not, and the rate depends on what type of income, how much, and what your deductions are (not a simple equation).  The exception is for income received from an exempt source, such as a Roth IRA (which has already been taxed) or from exempt income, such as interest from US Treasury securities.  See your accountant or financial planner for specific details.
615895
It depends on your income.  Usually, it's the amount that you would pay in taxes at the end of the year + SS things.  This works out to around 20-40%, depending on your tax bracket.
931023
FICA is 6.2% up to the wage base (about $95,000 next year) for social security and 1.45% on all wages for Medicare.  \n\nFederal taxes depend on your filing status (single, married, etc.) and how many exemptions you claim.  The object of the W4 is to correctly "guess" how much taxes you should withhold during the year so you don't owe a lot or get a big refund come April 15.\n\nKentucky has graduated rates, just like the federal income tax.  Here's a link to their rate table:\n\nhttp://dab.nfc.usda.gov/pubs/docs/taxformulas/formulas/statecitycounty/taxky/taxky.html
1070556
Very few of the answers above do make any sense.  Registering as a company does not make sense.  First, you have to be a legitimate self-employed entity.  I gather you are not.  Second, at your earnings level, your tax liability would be higher as a corporation vs an individual. \n\nAlso, adding additional personal exemptions on your W2 as suggested by others does not work either.  First, they are illegal.  Being single with no dependent, you just can't claim additional personal exemptions.  Even if this was legal, it would still not work.  It would increase your take home pay marginally.  But, it would increase your tax liability at filing time.  So, you have to try something else. \n\nBuying a home will result in substantial tax deductions because the interest component of your mortgage and property taxes are tax deductible.  However, I am not sure buying a home makes sense right now.  They are staggeringly expensive.  The mortgage will wipe out your cash flow.  Forget the good life.  Also, from an investment standpoint over the long term, I am not sure that a home is a better investment vs renting, and using the savings to invest in a diversified portfolio of stocks and bonds index funds. \n\nHere is what I think makes better sense for you.  \nFirst, realize that a 29% income tax rate for the amount of money you make is extremely low.  It has to be one of the lowest income tax rates of any developed country.  \n\nSecond, maximize your funding under your company's 401K plan (at least reach the minimum level qualifying for the company's matching.  It is typically 3% to 6% for most companies).  That will reduce your taxable income and give you an automatic 100% return on your money because of the company's matching. \n\nThird, invest the maximum you can in a Roth IRA (maximum $4,500).  At your income level, you don't qualify for a traditional IRA anyway.  And, for you a Roth IRA is better anyway, since you will never have to pay taxes on those funds. \n\nFourth, consider donations to your favorite charities.  These will reduce your taxable income too.  \n\nFifth, put some money in your company's flexible spending account for covering out of pocket medical expenses.\n\nSixth, if you have some extra funds for investments consider Muni bonds.  On an after tax basis, they provide a higher return than taxable bonds because their interest income is not taxable.\n\nIn summary, I gave you several recommendations to increase your taxable deductions.  These include the 401K, donations, flexible spending account.  I also gave you recommendations to boost your tax-free investment income: Roth IRA, and Muni bonds.\n\nIf you need any clarifications don't hesitate to contact me through "Answer."  And, I'll revise my answer accordingly.
933549
When you work two jobs you frequently run the risk of under withholding.  As the withholding on each assumes that they are the only income and both take into account the standard deduction and exemptions that you would have. It is sometime difficult to determine how much you should take out however the second page of form W-4 makes a pretty good effort at explaining how to go about it.  The link below will take you to that form.  Another way of figuring out how much you should take out is to due a practice tax return with your expected total income and see that you W-4's conform to the tax due. \n  \nhttp://www.irs.gov/pub/irs-pdf/fw4.pdf?portlet=3
317967
It would be taxed based on your tax bracket. This depends upon your income level.
750473
Excellent question!\n\nImagine a time long ago where once per year the tax man would stop by and ask how much you made the previous year and then say "give me 25%".  Oftentimes, you spend all you made and didn't have the 25% sitting around.  The tax collector would often under collect the taxes by a large amount.  So, the government got smart and said, "Why don't we collect taxes with every paycheck instead of waiting until the end of the year?"\n\nNow, if you have a flat tax, this is easy.  If your tax rate was 25% and there were no credits, deductions, or adjustments, the IRS would simply take 25% of your gross pay.  In fact, they do this currently with social security (6.2%) and Medicare (1.45%). \n\nBut, we don't have a flat tax.  Our tax structure is quite complicated.  We enter all our income minus all our adjustments, deductions, exemptions (dependents) to get to our final taxable income which is taxed at a tiered rate from 10% to 35%.  How much should your employer withhold and give to the IRS on your behalf every paycheck?  5%?  10%?  30%?  Let's say you and a coworker both earn $50,000 per year, but he has a wife and 3 kids.  Maybe his federal tax is only 5% of his earnings whereas you, single and no kids, has a federal tax of 15%.  If your employer withholds 10% from each, your coworker will get a large refund and you will end up owing.  He may want more in each paycheck and a smaller refund.  You may want less in each paycheck and not owe anything at the end of the year.\n\nWithholding allowances give you, the taxpayer, that control.  They allow you to throttle the amount your employer withholds from each paycheck and gives to the IRS.  There are limitations.  If you choose an allowance that is too large, you may end up owing more than the IRS feels you should and they will charge you with penalties.  On the other hand, if you choose a real small allowance, you will end up getting a much larger refund, but each paycheck may be not have enough post-tax money.\n\nBy the way, congratulations for calling them "withholding allowances" and not "dependents" or "exemptions".  Most people don't know the difference.
347598
The increase in tax-free threshold will clearly benefit low income owners.  It will lower the average taxable income and the benefit will be reaped by more taxpayers than it would've been if the former option is chosen (lowering of top personal tax rate).  Because, seriously, what percentage of the taxpayers are earning enough taxable income to fall into that top income bracket anyway?
621149
It depends.  If you really can claim 2, then yes go and claim 2.  You will get more now and less/none on your refund.  This is preferable.  Just beware that if at tax time, you can't actually claim 2, you'll have to pay the taxes and in some cases, there might be penalties if you claim much more than you were supposed to.  As in, you claimed 10, but you were only supposed to claim 2.\n\nRead over the W-4 and claim the number that you should.  The labels are pretty clear.  It's nonoptimal to blindly claim 0 and get a return because the government gets to use your money interest free for that entire period when it was yours anyway.
319288
It depends your exemptions, filing status (single, married, ect) and your gross income (amount before taxes).\n  You can check online at the website for the IRS.  In the search type in Circular E.  The circular E has charts where you can find information based on your income, how many dependents you are claiming, and your filing status.  There you will see exactally how much they will take out of your paycheck depending how many exemptions you are claiming.\n  Your withholding is the only thing that will change.  Your social security and medicare do not change.\n\nI hope that my answer was helpful.
995973
It is just withholding just like from with a w2. You file your taxes and you report the total amount withheld, then you determine your total owed and total withheld and then you pay the rest you owe. \n\nYes 28% is a lot.
469687
It depends on your age, where you live, how it affects your other income, etc. Talk to a tax accountant.
44339
No you won't get penalized.  It is like giving an interest free loan to the IRS but a good way o trick yourself into saving money.  $100 might make too big of a difference in you paycheck try $50.
676051
You can choose to have some taxes taken out before you receive the money or receive all winnings and pay at the end of the year.  I suggest having them taken out.  It will probably be a flat rate of about 35% or just ask for the max.  You should receive a W-2G in January from the govt. You should report it on line 21 of a 1040. Depending on what your income was before you may not qualify for some tax credits.