Hi,

I am an OPT Student and my annual salary is $68,000.Can anybody please suggest me how much should be my federal and state tax deduction.I have filled a w4 form with my employer and when I tell him that my deduction should be less he just says I have mentioned single in the w4 so whatever the deduction is it will remain.Please suggest me my federal and state tax deduction on a biweekly pay of $2615

Thanks a lot!

Your state?
On W-4, you claimed single. How many allowances?

Your state?
On W-4, you claimed single. How many allowances?

Hi Mukat,

Thanks for replying.My state is Maryland.Yes I have claimed single on W4.I am not sure about the allowances .I have emailed my employer but didn't get a response.I will really appreciate if you can suggest how many allowances should be there on my W4.I am single ,no additional income,one job,no dependents,annual salary 68,000

I really appreciate your help

Regards
Kanwar

Kanwar:

Under IRS rules for foreign nationals, the MOST you can claim for allowances when SINGLE is ONE allowance. This is done to ensure enough taxes are withheld to cover your federal tax liability, and SINGLE with one allowance WILL do that.

If you claim SINGLE with ONE allowance for the Maryland state withholding, enough will be withheld to cover the state tax liability as well.

After your employer learnes from your form W-4 the number of withholding allowances for you, your employer selects a withholding method. Employers usually choose EITHER wage-bracket method or percentage method. BOth of the method, as I know, distinguish between married and unmarried persons, and both methods provide the full benefit of the allowances claimed by you on your form W-4.

After your employer learnes from your form W-4 the number of withholding allowances for you, your employer selects a withholding method. Employers usually choose EITHER wage-bracket method or percentage method. BOth of the method, as I know, distinguish between married and unmarried persons, and both methods provide the full benefit of the allowances claimed by you on your form W-4.

Thanks for replying! Can you please suggest me how much would be my tax bracket.My annual salary is $68,000. My bi weekly check is 2615 out of which 472.11 was deducted for federal tax and 114.84 was deducted for state tax.
It will be great if anybody can tell the percentage of deduction should be for Maryland state tax and federal tax.
I would really appreciate if anybody can suggest if the deduction are right.

Thanks in advance

QUOTE," My annual salary is $68,000. "----Assume that you are a F1 visa holder and single from India, and you can claim your personal exemption and standard deduction in 2010, then your taxable income is;$58,560 and your marginal tax rate is28%.The Bush tax cuts of 2001 and 2003 are set to expire at the end of 2010. Thus, if US Congress doesn't act, the relatively low income tax rates will be replaced by the pre-2001 level tax brackets.
In other words, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets will be replaced by 15%, 28%, 31%, 36%, and 39.6% brackets in 2011.So, in 2011, your marginal tax rate for your taxable income of$58,560 will be also 28%.


"My bi weekly check is 2615 out of which 472.11 was deducted for federal tax . . ."---- Assume that you are single and claim only one withholding allowance onyour W-4, then $2,615 is the GROSS bi-weekly salary( I mean bi-weekly GROSS income) , the amount of your federal tax laibility withheld from your paycheck is$436,61; $2,615-$140.38(bi-weekly allowance value of 2010)=$2,474.62,(your excess bi-weekly wage). You should apply PERCENTAGE method for the calculation of your withholding Federal tax liability; $2,474.62-$1,387*25%+$164.70=$436.61. Your FICA; OASDI;$2,615*6.2%=$162.13, HI;$2,615*1.45%=$37.92. And so on.
Please visit the website for further payroll tax info; http://legacy.americanpayroll.org/pdfs/pc2009/PCELEC0923.pdf

"I would really appreciate if anybody can suggest if the deduction are right."---It is really hard to accurately calculate the deductions from your paycheck Unless you provide people with all of your accurate personal information on your W-4.