Are my first paycheck tax withholdings too high?
It is hard to tell if initial tax deductions are correct or simply reflective of how much taxes cost. This uncertainty leaves new workers unable to figure out how to calculate or verify the proper amount to withhold.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1Using online paycheck calculatorsDid this help you?
- 2Breaking down individual taxes and deductions manuallyDid this help you?
- 3Comparing tax percentages with other earnersDid this help you?
- 4Withhold 22% plus the state tax rate as an approximation.Did this help you?
- 5Submitting a new W-4 or state withholding form to adjust the withholding amountDid this help you?
- 6Waiting for tax returns to get any over-payment refundedDid this help you?
- 7Researching tax rules independentlyDid this help you?
- 8Asking questions on online forumsDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“I’m not sure if my withholdings are wrong as this seems steep, or am I just being ignorant as to how much taxes actually are unfortunately?”source ↗
“How do I go about calculating how much to withhold for taxes?”source ↗
“For my first check, I worked 29.25 hours -> $497.25, but $177 taken out in taxes. 35% !? Does this seem correct or do I need to fix it?”source ↗
“Boooo that’s brutal! I was thinking I’d have to earn more more to be penalized that much”source ↗
“I’m still stumped on our FICA taxes when it comes to predicting our take home income.”source ↗
“Is FICA applied to gross income, AGI, MAGI, or some other measure of wages?”source ↗
“Is that 6.2% Social Security threshold for both jobs independently? Or is that still the threshold for joint filing”source ↗
Where this came up
People with this problem also raised
- 4When should benefit deductions start for new enrollments?
- 4Will I get in trouble with the IRS for cash or off-the-books work?
- 2How should I divide my paycheck?
- 4Do tax write-offs mean you get free stuff or money back?
- 2What to do when an old accountant withholds tax documents and changes bills
- 3How much tax do you owe on forgiven debt?