I am an F1-student currently on OPT and currently working
in California. My annual salary is $60000. I get two
paychecks per month. I am unmaried and no one can claim me
as dependent.

I started working for this company on May 29, 2007.

My employer deducted the following taxes:

Pay Period - 6/16/07 to 6/30/07
Salary 5478.28
Federal WT: 1171.29
California ST: 394.95
CA DIS 32.54

The salary for two paychecks (for june) was given in the
check mentioned above.
(In first paycheck they deducted FICA/Medicare, but
OPT students don't pay FICA/Medicare, so they
cancelled the payroll and gave a new check)

1)My question is that are they deducting the right amount of
taxes?

I did the following calculation (I may be wrong) but it
appears that they are deducting lot more than they should.

Annual earnings:
5000 per month * 7 months + 478.28 (for 2 days in may)
=35478.28

Health = 108 per month premium for 9 months = 972
Standard Deduction = 5350
Total deduction = 6322

Taxable Income = 29156.28

tax = 782.50 + (29156.28 - 7825)*0.15
= 3982.192

So monthly deduction for federal tax should not be more than
3982.192/7 = 568.88

2)If the employer is deducting more than they should and
refuse to accept what I am saying, what are my Options?

3)Holding more money than is necessary would affect my monthly
expenses. What should I do?


-AS

They are withholding WAY too much.

Your options are relatively simple. File a new W-4 with your employer and claim more exemptions to LOWER the withholding.

Thanks for your quick reply.

In my previous W-4 form I had claimed two allowances, 1) being unmarried, and 2) no one can claim me as dependent. None of the other allowances apply to me.


Is there anything wrong in my calculation for federal withheld taxes?

Refile the W-4. The amount of money being withheld is WAY too much for two allowances.