My Full Time Check is $1,000 less than my SA...How? Forum

[MKC]

This is almost certainly a tax withholding issue. Many firms adjust withholding for summers knowing that hte tax rate for someone making 30k a year is >10%. But someone making 180k is over 20%.

If you didn't get a massive refund after SA year, this is the cause.

So can I increase my withholdings? I once tried the IRS calculator and must've done something wrong because it said I can take 19 allowances which seems insane- I just took 2.

For your SA? if they don't adjust the withholdings, yea you can take like 19 allowances. But you can't do that when you start working for real.

Sorry I meant now. Can I take more than 2 withholdings? Or will I get an insane tax bill in April if I do?

You probably can't do 19 for stub years. But 2 is prob a bit low for stub year. But for a full year, 2 is probably too high.

Unless you need the cash I'd stick with 2 and just file your taxes in Feb.

But what I don't understand is if I have the right number of allowances, how am I still making $1000 less than in the summer?

[Anonymous User]

Folks are saying that someone in HR might have you at 3+ allowances as a summer (or you might've put that many in when filling out your W4 for summer employment based upon someone's good advice), and now you're somewhere below that.

"Correct" allowances generally means as close as possible to no tax liability or a huge amount owed come tax time. Well, in a year you'll make $35K, that's some number. In a year you'll make $80K, it's another. In a $180K year, it's yet another.

Do you happen to have some version of an E-pay stub for your summer and now? If so, it'll be pretty easy to determine what's what.

So I just compared the two and here's what I found:

Earnings as SA: 7,000
Earnings as FT: 6,923

My tax data as a SA has me listed as "exempted for NY state with 0 allowances" whereas im now listed as having two and married

My fed withholding is on its own almost double now compared to my SA as well.

[dabigchina]

Folks are saying that someone in HR might have you at 3+ allowances as a summer (or you might've put that many in when filling out your W4 for summer employment based upon someone's good advice), and now you're somewhere below that.

"Correct" allowances generally means as close as possible to no tax liability or a huge amount owed come tax time. Well, in a year you'll make $35K, that's some number. In a year you'll make $80K, it's another. In a $180K year, it's yet another.

Do you happen to have some version of an E-pay stub for your summer and now? If so, it'll be pretty easy to determine what's what.

So I just compared the two and here's what I found:

Earnings as SA: 7,000
Earnings as FT: 6,923

My tax data as a SA has me listed as "exempted for NY state with 0 allowances" whereas im now listed as having two and married

My fed withholding is on its own almost double now compared to my SA as well.

So you didn't file with New York while working in New York and living in New York during your SA?

Sounds like your firm fucked up your SA withholding.

As to your fed, it sounds like your firm did you a solid and calculated a sane withholding amount for your SA. Most firms would have just withheld 35% and called it a day (I know mine would have).

[MKC]

Folks are saying that someone in HR might have you at 3+ allowances as a summer (or you might've put that many in when filling out your W4 for summer employment based upon someone's good advice), and now you're somewhere below that.

"Correct" allowances generally means as close as possible to no tax liability or a huge amount owed come tax time. Well, in a year you'll make $35K, that's some number. In a year you'll make $80K, it's another. In a $180K year, it's yet another.

Do you happen to have some version of an E-pay stub for your summer and now? If so, it'll be pretty easy to determine what's what.

So I just compared the two and here's what I found:

Earnings as SA: 7,000
Earnings as FT: 6,923

My tax data as a SA has me listed as "exempted for NY state with 0 allowances" whereas im now listed as having two and married

My fed withholding is on its own almost double now compared to my SA as well.

I thought a picture would help, but apparently not.

You made, presumably, ~$42,000 over the summer, which put most of your wages in the 15% bracket, and excluded the first $10,000 of taxable income. Now most of your income is in either the 25% or 28% bracket, or roughly double what it used to be. That's your difference.

Per the chart above, if you make $38,000, you owe $5,226 in federal income taxes.

If you make $190,000, you owe $46,643 in federal income taxes.

[dixiecupdrinking]

Welcome to paying 40% of your salary in taxes.

[zhenders]

This thread is funny-sad. No offense intended, OP; taxes aren't fun obviously, but I mean, this thread kind of comes down to "tax brackets exist."

[PeanutsNJam]

If you take normal withholding (usually 2), you will pay taxes during your SA the same as a full time 1st year. You don’t get taxed at a lower bracket during your SA; you just get a fat refund in April.

[MKC]

If you take normal withholding (usually 2), you will pay taxes during your SA the same as a full time 1st year. You don’t get taxed at a lower bracket during your SA; you just get a fat refund in April.

My fed withholding is on its own almost double now compared to my SA as well.

It sounds like the firm adjusted the withholding to account for the lower annual salary. (SA vs. full time)

[PeanutsNJam]

This can be easily resolved if OP tells us what his bi-weekly paycheck was during his SA.

[fire_ice]

How many state and city allowances/exemptions can we claim as a single with no dependents?

[PeanutsNJam]

How many state and city allowances/exemptions can we claim as a single with no dependents?

The form says claim only as many as you're entitled to. You can claim up to 19 without getting a mandatory flag for the IRS (I think your HR is required to report 20+ or something--it's on the form), so that's what SAs usually do.

[Anonymous User]

I had 23 allowanves during my summer, 15 stub year and now 1. It greatly affected my take home.