Income tax withholding

Discussion in 'UPS Discussions' started by JPIII, Nov 24, 2011.

  1. JPIII

    JPIII New Member

    I have a question about my federal tax withholding. I got 500 some dollars from federal and they only took out 179.60. As for my state returns I got around 200 and they only took out 110.13. I started on twilight and they took out 643.70 for federal and 200.91. I used the federal calculator and it said i'm only getting back 643 why is it so low? I have 0 dependents. Also is United Way a tax right off?
     
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    UW is a tax write-off only if you itemize. From what you describe you will be taking the standard deduction as you do not have enough deductions to itemize.

    The reason your refund was larger last year than it will be this year is the Making America Work tax credit of $400 which you received in 2009 is not available in 2010.

    Do yourself a favor when you file and use one of the free online tax software programs.
     
  3. JPIII

    JPIII New Member

    So i'm going to get 643 unless I accumlate more until Dec. 31? Also how do I itemize the United Way so I can get a tax write off?
     
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    UW donations would go under charitable contributions which is Schedule B.

    Trust me, you do not have enough deductions to itemize.
     
  5. Funfact

    Funfact Well-Known Member

    The numbers you come up with are approximate and could change depending if any new tax laws go it to effect after the new year. You have to actually do your taxes to figure out what you are getting back the online tax calculators are estimates meaning you could get more or less back. Your most likely going to take the standard deduction because the sum of your itemized deduction is going to be less than the standard deduction. With that being said your union dues and United Way contributions are not going to be tax write offs.

    Not everyone gets a big tax refund. Depending on what you claim on your W4 and how much you make effects the amount your going to get back at the end of the year.
     
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    To add to what upsguy is saying, you don't really want a big tax refund. Yes, you want all of the money that you are entitled to, but a big tax refund means that you are having too much money taken out each week that you are basically lending to the government for free.
     
  7. texan

    texan Well-Known Member

    Unless he gives about 220 to 250 a week to United Way. :happy2:
    Not being funny really. It takes a lot to qualify for deductions in giving, people just do not realize that.

    Most solicitations say " It is tax deductable" They do not explain that you must
    meet a certain threshold of giving to begin to see reductions in taxes.


    But then again, I hope that is not why people give to begin with.
     
    Last edited: Nov 24, 2011
  8. Funfact

    Funfact Well-Known Member

    Not entirely true as long as your total itemized deduction add up to more that the standard deduction even $1 week to the united way could be tax deductible. It all depends on your other deduction and the amount of them. (ie. student loan interest, mortgage interest, etc)
     
  9. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I generally get back (as part of my refund) 25% of what I donate to UW.
     
  10. JonFrum

    JonFrum Member

    The "Making Work Pay" tax credit was available in 2009 and 2010.
     
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You're right--I meant to say 2011.
     
  12. texan

    texan Well-Known Member

    You are 100 per cent correct. Thanks. I meant for a young non home owner, and I did not think of student loan also.