shizzat taxed out of it

I am not an income tax expert by anymeans, but I have a question.

Since I have worked here I keep hearing people say that if you work alot of off duty jobs in the same check cycle you have alot more taxes taken out than if you spread them out over a few cycles.

This is what I dont understand. If your taxes are based on your yearly income and not as you earn it, what am I missing?

More will be taken out during that cycle but it going to be the same amount (total) if you spread that out over 2 or 3 checks, its just a larger lump in the one check.

Can someone explain the other side of this coin??

You are taxed on what your amount is for that pay period. If you make over a certain amount, the % you pay for taxes goes up. So if you have a good amount of off duty, you lose more of it in taxes.

The more you make in that pay period the higher a % you pay.

I think I got this right

Your tax bracket is based on ur yearly income not a pay period. They are taking out more yes..but it is the same %.

Your tax bracket is based on ur yearly income not a pay period. They are taking out more yes..but it is the same %.

Actually, your withholding taxes percentage, fluctuate depending what you make for the pay period in question. When you surpass a certain $ amount, you go into another bracket.

Here is an example direct from IRS Circular E.

TABLE 2—BIWEEKLY Payroll Period
(a) SINGLE person (including head of household)—

If the amount of wages|
(after subtracting | The amount of income tax
withholding allowances) is: | to withhold is:

Not over $102 | $0

Over But not over| of excess over
$102 $389 | 10% $102
$389 $1289 | $28.70+15% $389
$1289 $2964 | $163.70+25% $1289
$2964 $6262 | $582.45+28% $2964


This is just a sample chart of how it is. If you want, you can download the circular at http://www.irs.gov/formspubs/lists/0,,id=97819,00.html

This is withholding only. Social Security and Medicare is a steady 7.65% up to $90,00 per year, and then only 1.45% pay above $90,000.


I hope this helps some. You can download the circular and see all the charts. You can then see what your limit is before you hit the higher tax bracket in a pay period.

This is prb the most informative and positive string I have read on this board in about 2 years! Great job....I think everyone could learn from this posting.