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Understanding Taxes, 401 etc

Understanding Taxes, 401 etc

Old Jun 10th 2016, 1:26 pm
  #31  
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Default Re: Understanding Taxes, 401 etc

Originally Posted by Pulaski View Post
My employer has a tax-payroll web site that asks basic questions - mostly about your family and calculates a withholding figure. You can then request additional withholding.
That's handy. I assume it's just automating the IRS W4 worksheet?
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Old Jun 10th 2016, 1:31 pm
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Default Re: Understanding Taxes, 401 etc

Ah, so they auto deduct some taxes then.... That's good

All I have to go on based on taxes in the films I've seen It's one thing travelling the states, another thinking about living there.
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Old Jun 10th 2016, 1:34 pm
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Default Re: Understanding Taxes, 401 etc

Originally Posted by Owen778 View Post
That's handy. I assume it's just automating the IRS W4 worksheet?
I guess. .... And I can go in and change it at any time during the year. If my accountant says I'm marginal on my tax withholding for the year when he does a pre-year-end review in late October, I sometimes go in and bump up my withholding for the last few pay cycles of the year.
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Old Jun 10th 2016, 1:59 pm
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Default Re: Understanding Taxes, 401 etc

You just don't want to owe more than 10% of your taxes or more than $1000 at the end of the year or they make you pay estimated taxes every quarter. So it's a balance between paying too much and giving the Government a free loan or not paying enough and being penalized .

This article is about as close as I could find on the subject.
https://www.irs.gov/businesses/small...stimated-taxes

This only really catches you if you sell stock or have other untaxed income such as rental income.
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Old Jun 11th 2016, 11:54 am
  #35  
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Default Re: Understanding Taxes, 401 etc

Originally Posted by RandomlySet View Post
Ah, so they auto deduct some taxes then.... That's good

All I have to go on based on taxes in the films I've seen It's one thing travelling the states, another thinking about living there.
The US puts a lot more responsibility for calculating and paying taxes on the taxpayer than the UK does. Your employer will give you an IRS W4 form when you start work and what you enter on it will help them to estimate the taxes they should withhold from your paycheck. At the end of the year you will fill out an IRS 1040 and figure out the exact amount you owe and then apply what you've had deducted through the year by your employer and either pay a bit more or get a refund...you get a W2 from from your employer that shows the exact amounts withheld for the year.

You will also have to do similar things for your state taxes. However, it's not so bad because tax software programs (which most people now use) do the Federal and State taxes at the same time.
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Old Jun 11th 2016, 4:47 pm
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Default Re: Understanding Taxes, 401 etc

Originally Posted by nun View Post
The US puts a lot more responsibility for calculating and paying taxes on the taxpayer than the UK does. Your employer will give you an IRS W4 form when you start work and what you enter on it will help them to estimate the taxes they should withhold from your paycheck. At the end of the year you will fill out an IRS 1040 and figure out the exact amount you owe and then apply what you've had deducted through the year by your employer and either pay a bit more or get a refund...you get a W2 from from your employer that shows the exact amounts withheld for the year.

You will also have to do similar things for your state taxes. However, it's not so bad because tax software programs (which most people now use) do the Federal and State taxes at the same time.
Aha, thank you
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Old Jun 15th 2016, 5:20 pm
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Default Re: Understanding Taxes, 401 etc

Yes. This is all the explanation I needed. I don't know I feel stupid but I just was't getting it. My employers told me I need to fill out my "tax forms" when I arrived, but I don't know whether they get that we don't do that for income tax in the UK.

On the payroll website there is zero guidance about which forms I actually need to fill in, it just lists them all out. The people there haven't been helpful at all. I just got my first pay cheque and it looks like it's gross of any tax. Now I'm freaking out because I don't know whether this means I have to declare it to some authority as well as filling out the forms I needed to in the first place.

Grrr
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Old Jun 15th 2016, 6:51 pm
  #38  
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Default Re: Understanding Taxes, 401 etc

Originally Posted by boldy3 View Post
Yes. This is all the explanation I needed. I don't know I feel stupid but I just was't getting it. My employers told me I need to fill out my "tax forms" when I arrived, but I don't know whether they get that we don't do that for income tax in the UK.

On the payroll website there is zero guidance about which forms I actually need to fill in, it just lists them all out. The people there haven't been helpful at all. I just got my first pay cheque and it looks like it's gross of any tax. Now I'm freaking out because I don't know whether this means I have to declare it to some authority as well as filling out the forms I needed to in the first place. ....
Look for the W4 and complete that, then hand it back to your employer. I wouldn't worry too much if you have paid no tax for one or two pay cycles, but you might want to add an "additional withholding amount" on your W4 to ensure you have caught up by the year end (12/31).
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