Can anyone explain to me tax deductions?

April 27th, 2010

I will try to make my question as clearly laid out to you as possible:

I am going to be working in the summer at my dad’s restaurant
4 days a week, 7 hours a day.
I will be paid every two weeks.
I am 14…..[I CAN WORK, LEGALLY]
I will *probably* be paid the minimum wage for Pennsylvania, which is .15 an hour.
Will I get tax deductions?
IF I WILL: How much money will I get for my paycheck?
IF I WILL NOT: How much money will I get for my paycheck?

Thank you all! (:
Thank you so much Star!
I have a bank account and I will be saving almost all of my money.
The ONLY money I will be spending is that of which to buy myself a cell phone.
I think it is my responsibility to buy & pay for it.
Thank you for the tip~!

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Replys

  1. Richard M - April 27th, 2010 at 10:38 am

    Go to PayCheckCity, enter your data, and it will compute your withholding and take home pay:

    http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp

  2. Aldo G - April 27th, 2010 at 10:38 am

    that ends up being about $10,400 for the full year minus these 3 months that have passed, around $200 a week, but if you are considered an employee you will be deducted futa social security and all the rest so it will be less than that….i dont think it would be smart to be listed as an employee at such a young age…

  3. jpr302001 - April 27th, 2010 at 10:38 am

    SS of 6.2% will be withheld
    Medicare of 1.45%
    Federal & state tax withheld will depend on how you fill out the W4.

  4. Star G - April 27th, 2010 at 10:38 am

    Yes, they will deduct FICA (Federal Income Tax), Social Security tax, and Medicare Tax. You should probably expect to have around 20% – 25% of your gross earnings deducted in taxes. Good news is at tax time you can have your Dad show you how to fill out a 1040EZ form and get some of the money back.

    I would expect that you will earn about $200 (gross) a week, and bring home somewhere between $150 and $160 after taxes.

    Please set up a savings acount and start saving some money out of every paycheck…it is a hard lesson to learn, but it pays off later in life. Saving is very important.

  5. DublT - April 27th, 2010 at 10:38 am

    u dont have 2 pay taxes if u dont make over 10k a year which you dont so ull get money back

    they typically take about 30% so somewhere around 30% of wat u make annually is wat ull get bak

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