Quote:
Originally Posted by GatorB
First of all minimum wage is $5.85 an hour not $5 and it's goes up to $6.55 this July and up to $7.25 in July 2009. Secondly the IRS wouldn't take 30% of your taxes if you made that little. In fact even if you made $100K a year the IRS wouldn't take 30% of your money even if you include FICA taxes. People WAY overestimate how much the IRS can actually take from you. If I win $100 MILLION in the powerball lottery the most I'd pay is 35%
Say you made $10 an hour that's about $21,000 a year. Now say you're single and have no dependants other than yourself and no fancy deductions. In other words this is the WORST tax situation to be in. FICA taxes would be about $1600 a year. As for income taxes.
for 2007
Gross income $21,000
-$5350 for standard deduction
-$3400 for dependant( yourself )
taxble income $12,250
The first $7850 of taxble income is taxed at 10% for single people. The remaining $4400 is taxed at 15% for a total of ~$1400
So FICA tax $1600
Income tax $1400
TOTAL $3000
After tax income 18,000. Monthly average $1500
So you can clear $1500 a month by making about $10 an hour not $12.36
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my last job 3 years ago (wow, cant believe its 2008 already) i made $72,000 a year and I had over 35% of my money taken out. however, i did get a lot back at the end of the year, but that is pretty much the norm. As well, my ex made $38,500 a year and it was about the same (2 selections on the w4 or whatever the IRS form was).
im basing those numbers from California because thats the only place ive really ever worked and made more than $6 an hour. when i was in college i made $5.85 working at the school library and i do remember hardly any taxes taken out but i thought that was because of it being a state funded school.