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-   -   Figuring out how much I owe (https://www.askmehelpdesk.com/showthread.php?t=35024)

  • Sep 24, 2006, 05:22 PM
    ssp2yssp12
    Figuring out how much I owe
    I moved this past June from Washington, DC to NYC. I am trying to figure out how much more in taxes I might have to pay, besides what is taken out of my paycheck biweekly. I am a single person with no dependents so I have the standard deductions for a single filer. The first half of the year, I made 62K in DC, with a 5K bonus, and the second half of the year in NY I now make 78K with a 5K bonus. Would I owe any more money come tax time next year for 2006? The only other deductions I might have is $500 in moving expenses, $2500 I donote to a charity and a few hundred dollars worth of student loan interest. Thanks for your help.
  • Sep 25, 2006, 05:17 PM
    AtlantaTaxExpert
    You will have to pay taxes to DC and both NY state and NYC, and I am sure they are already withholding taxes.

    Using standard deduction,

    - Your DC tax liability will be about $4,725 (on $67K income).
    - Your NY state tax liability will be about $5,500 (on $83K income).
    - Your NY city tax liability will be about $3,000 (on $83K income).
    - Your federal tax liability will be $34,100 (on $150K income).

    These are rough estimates. You should be able to itemized, since I assume they have withheld most if not all of the state/city/DC taxes noted above. Using those tax figures as deductions (plus the $2,500 in charitable donations), your federal tax due goes down to about $32,400.

    Note that the student interest is NOT deductible; you make too much money!
  • Sep 25, 2006, 05:30 PM
    ssp2yssp12
    Hi ATL Tax Expert:
    Thanks for your response! My only question to your answer is why my federal tax liability would be 34,100 based on 150K income? I worked half a year making 67K and the other half of the year making 83K. Therefore, wouldn't my federal tax be based on the average of 67K and 83K, about 75K? Thanks for letting me know.
  • Sep 25, 2006, 05:55 PM
    ssp2yssp12
    Quote:

    Originally Posted by AtlantaTaxExpert
    You will have to pay taxes to DC and both NY state and NYC, and I am sure they are already withholding taxes.

    Using standard deduction,

    - Your DC tax liability will be about $4,725 (on $67K income).
    - Your NY state tax liability will be about $5,500 (on $83K income).
    - Your NY city tax liability will be about $3,000 (on $83K income).
    - Your federal tax liability will be $34,100 (on $150K income).

    These are rough estimates. You should be able to itemized, since I assume they have withheld most if not all of the state/city/DC taxes noted above. Using those tax figures as deductions (plus the $2,500 in charitable donations), your federal tax due goes down to about $32,400.

    Note that the student interest is NOT deductible; you make too much money!

    Actually, my question above applies to all the figures you stated. Shouldn't all the local tax liabilities be based in half the annual salaries I made since I only worked 6 months in DC and 6 in NY?
  • Sep 25, 2006, 06:35 PM
    ScottGem
    Where are you getting these ideas? You will earn 150K for the year, so your federal tax is based on that 150K. Your local taxes will be based on the amounts earned within that locality.
  • Sep 25, 2006, 06:49 PM
    ssp2yssp12
    Hi there:
    Sorry, I don't think we are on the same page. I DID NOT earn 150K for the year. If I am working at my previous job from Jan-June, I would have received about half of my income, so my salary would be taxed since I was receiving a biweekly payment equivalent to 67K if you divide 67K by 26 weeks. Then I moved jobs to NY, so I only earned about 38K gross from DC. The amount on my W-2s from my DC job would not say 67K, but something like 38K. Therefore, I wouldn't be taxed at 150K. THat is like saying someone who changes jobs three times in one year, each paying 40K a year, means they would be taxed at 120K... that wouldn't be the case, right?
  • Sep 25, 2006, 06:55 PM
    ScottGem
    Ahh that wasn't clear that you were citing your annual salary, not your actual earnings. Yes, if you were making 67K but only worked for 6 months, then you earned about 34k, Similarly for your NY earnings. You can go to IRS.gov to get tax tables or you can buy TurboTax or similar to project your tax liability.
  • Sep 25, 2006, 06:57 PM
    ssp2yssp12
    Whew, thanks. I was confused and scared for a second!
  • Sep 25, 2006, 07:00 PM
    ScottGem
    It would have helped if you were clearer about your earnings.
  • Sep 27, 2006, 07:04 PM
    AtlantaTaxExpert
    Revised Numbers:

    Using standard deduction,

    - Your DC tax liability will be about $2,410 (on $38K income).
    - Your NY state tax liability will be about $979 (on $29K income).
    - Your NY city tax liability will be about $1,590 (on $29K income).
    - Your federal tax liability will be $11,700 (on $67K income).

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