I'm going to start working for the last 4 months of 2008 in CA, how will this affect my income taxes?

Question

i.e. Say I get 10,000 in those 4 months with a bi-monthly paycheck of $1250. Will I have federal & state income taxes that correspond to tax brackets as if I'm making $30,000/year and then have to obtain deductions later, or is my shortened salary year recognized immediately in those bi-monthly paychecks?

Answer 1

If this is a new employer, and they use one of the standard payroll programs, you'll be taxed as if you made $30k.  It means you'll probably get a slightly bigger refund when you file your returns.  You can adjust your deductions when you fill out your withholding paperwork.

Answer 2

Recognized immediately, your deductions will be higher.

In theory, you will pay the same amount no matter the amount deducted at the time your paid.

Answer 3

Your tax filing for the year depends on your actual income for that year, so will be the same as if you had worked all year but made that same $10,000.  

Withholding will be as if you were making that same amount all year, so too much will probably be withheld.  You'll get the extra refunded when you file

Answer 4

The tax on your income in the year 2008 does not depend upon your income in 2007.

So if you earn $10,000 in 2008, then after standard deduction of $5450 and exemption of Rs. 3500, your taxable income is Rs.1050. Tax is Rs. 105.  For articles on your U.S. tax return, http://taxipay.blogspot.com/2008/04/list...

Answer 5

Assuming that you have not changed your W-4 form you may see a slight increase in the amount taken from your check in a shorter period with the same earnings.  Each pay check is calculated as if that is 1/26th of your annual pay.  If if you compress the dollars paid into a shorter time the percentage of withholding will be slightly higher.  So you have it correct if you are making $10k total for the year your withholding will be calculated approximately as if you had $30k earnings for the year. If you are single and claiming your own exemption you will only have $105 federal tax liability on $10k in which case so you should get a $993 refund.