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Q. My husband works for a large company, and I receive disability and do not work. We just had our taxes done this week and got quite a shock! We had a federal income tax refund of over $4000, but owed state tax of $1000 and local taxes of $600. We are in PA. How [...]
Q. I utilize the withholding calculator on the IRS website to ensure my W-4 amounts are correct. This has gotten me very close to the amounts figured on my 1040 for the past 5-6 years since I’d begun utilizing the calculator. I do a final check with the calculator after the last pay date in [...]
Q. I just started as a temp through an agency. I work full-time and just received my first paycheck. I want to ask about the OASDI and the NY 2010-NYCNY withholdings. I was taxed heavily for the OASDI. What is the NYCNY withholding? Most importantly, I wanted to ask you is there any way to [...]
Q. My payroll person told me that the filing status on the W-4 doesn’t necessarily mean the same thing as my marital status. Is that true? What is filing status?
A. Filing status on the W-4 and filing status on your tax return are not necessarily the same thing. The W-4 drives withholding only. The withholding [...]
Hooray!! The annual update to the document every employer is anticipating finally occurred. Okay, maybe not all employers were as excited to see this as I was. Publication 15 should be every employer’s best friend. This document contains instructions on everything from obtaining an Employer Identification Number (EIN) to withholding, to employer taxes.
How does a [...]
As the end of 2009 quickly approaches, it’s important for all tax payers to begin preparing for the filing of their 2009 tax returns.
- Have you maxed out your HSA or IRA contributions? People with these kinds of accounts can actually make contributions for 2009 through April 15. Maximizing your contribution helps reduce your taxable [...]
Q. I work for a large company that maintains a few different business units under the parent company. The company uses different tax ID’s for each business unit. This year I changed jobs internally, moving from one business unit to another. In July I noticed that my year-to-date FICA contributions had reset as a result [...]
Q. I just started a new job and my employer wants me to do the payroll too. How do I learn some more about it so I don’t mess it up?
A. Thank you for looking for more education. So many people think that payroll is nothing more than taking out taxes. The payroll process has [...]
Q. I followed your advice and had my payroll department withhold based on W4 stuff instead of a flat percent. How do I know if I’m on track?
A. That’s a rather amusing question actually. Publication 15 and the W-4 both require that you use only marital status and number of allowances on the form. If [...]
Q. First, please explain the notes on line G of the W4 that talks about what to put on the form for children using different income levels. Secondly, I claimed 8 allowances last year and there were no taxes taken out of my check. This year when I complete the form it shows 9 or [...]
