Newish to US - still having problems understanding the tax stuff - please help...?

Question

We are about to move states from RI to FL,, hubby is getting a payrise to 123,000 per year and we are trying to figure out what our bi weekly take home money will be. I know that there is no state tax in FL, and that we are in 28% federal tax bracket. Right now he pays around 264 in SS on a 112,000 salary - will this change? I think he claims 0 on his deductibles - should this be a 1? Will this make a difference to our bi-weekly paycheck?

Answer 1

SS and Medicare taxes are a fixed percentage.  Income tax is graduated based on income.  See www.paycheckcity.com to estimate net income.

Answer 2

Look at the IRS website www.irs. gov and look under forms and publications for the Publication 15 Circular E.  This will give you the calculation tables for figuring withholding - you would look on the married filing jointly bi-weekly table for zero and one exemptions.

You should also be aware that social security stops when your wages exceeds $97,500.  If you have two employers in one year, the second employer does not know what the first employer paid, so you can claim a credit for the excess social security on your 2008 tax return.  There is no limit on the amount for medicare.