Posted on 01/02/2014 9:11:56 AM PST by Kaslin
What will your typical paycheck look like in 2014 after Uncle Sam's G-men have gotten their dirty, stinking ape paws all over it?
Obviously, the answer to the question of how much of your income will be left over for you after the federal government has snatched a good part it depends upon quite a lot. How much income will you make? How many withholding allowances have you set up with your employer on your IRS Form W-4? How much pre-tax contributions will you be making toward your retirement plan or your health care or dependent care flexible spending accounts? What if you get a raise?
Our tool below is designed to answer those questions for 95% of all Americans. You just need enter the indicated information as it applies for you, and we'll do our best to estimate how much of the money you work hard to earn will still be yours after the federal government has withheld what it wants from your paycheck!
But really, it's not necessarily as quite as simple as that, which is something that we'll discuss in more detail below the tool....
Now that we've given you a sense of how much money you'll have withheld from each of your paychecks in 2014 by the U.S. federal government, we should note that there are some really complicating factors that may come into play during the year depending upon how much you earn.
For example, in 2014, once you have earned over $117,000, you will no longer have the Social Security payroll tax of 6.2% of your income deducted from your paycheck. But then, by the time that happens, you'll have long been paying taxes on your income that are taxed at rates that are at least 10% higher than those paid by over half of all Americans.
There's also the complication provided by the so-called "Additional Medicare Tax" that your employer is required to begin withholding from your paycheck if, and as soon as, your year-to-date income rises above the $200,000 mark, which is part of the new income taxes imposed by the "Affordable Care Act" (a.k.a. "Obamacare"). Since the money collected through this 0.9% surtax on your income does not go to directly support the Medicare program, unlike the real Medicare payroll taxes paid by you and your employer, it is really best thought of as an additional income tax.
Since we've already mentioned "Obamacare", we should also note that many Americans may soon find themselves in the situation where they find that they have an additional income tax liability in 2014 because of the Affordable Care Act. At this writing, Americans who do not have health insurance coverage and who have not been included among those groups qualifying for hardship exemptions under the law are at risk of a nasty tax surprise, even if their situation comes about through no fault of their own thanks to the law's extremely careless construction and implementation. We'll address that potential additional tax liability soon....
There are other paycheck calculators like this on the Internet, including the very well done tools available at PaycheckCity.com. We really like PaycheckCity's calculators because they allow you to determine the amount of state income tax withholding that will be taken out of your paycheck separately from what the federal government takes.
Then again, if you live in one of the nine states that have no personal income tax for wage and salary income (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming), our tool above will provide you with a very good estimate of your actual take-home pay. We'll note that both New Hampshire and Tennessee both tax dividend and interest income, which doesn't affect your paycheck, but might influence your withholding decisions.
We've been in the business of calculating people's paychecks (not including state income tax withholding) since 2005!
Q: What Will Your Paycheck be in 2014?
A: Smaller.
If it weren’t for “witholdings” (probably spelled that wrong), How many people would send in a check to the feds yearly or even monthly?
Yet people who have never had to pay an ins premium in the past are going to send in that obamacare premium every month?
Most likely
I have my own business, and pay estimated taxes quarterly. Fortunately, I “self withhold” on all income to pay those taxes. When I opened my business, a colleague told me that if all Americans had to pay taxes the same way, we would never have allowed our government to grow to the size it has. I agree with that statement.
bfl
Yeah you did. It’s withholding as in with-holding
my dtr just changed jobs...she’ll have no health insurance....I’m scared about this and warned about the obamacare insanity.....hope she can figure something out...
If all small businesses decided NOT to send in those quarterly payments we would have them by the balls!
Starve the friggin bastards I say!
Never take a refund. That’s giving the gubmit a free loan of your money. Better is to withhold 90% of what your tax will be. That’s taking a free loan from the gubmit.
“I have my own business, and pay estimated taxes quarterly. Fortunately, I “self withhold” on all income to pay those taxes. When I opened my business, a colleague told me that if all Americans had to pay taxes the same way, we would never have allowed our government to grow to the size it has. I agree with that statement.”
Yep, make everybody cut a check quarterly or yearly for a few grand and you would hear the hollering.
Withholding is out of sight out of mind. And that’s just the way the IRS likes it.
I just hope to have one.
Absolutely agree! Everyone should have to write out that painful check every year. If we could get that into law, I guarantee a great fewer democrats would be elected and the tax system would be immediately overhauled.
The same that it’s been for the last 5 years. Thankfully the kids are moving out one at a time, and each one leaving takes off a burden of about $250 per month.
I dumped firefox and went back to i.e., when I did, I lost spell check. When I typed “witholding”, I knew it didn’t look right.
I.E has become totally useless for me
I don't really make any money,(SS+ withdrawals from IRA), so I'm not worried about taxes and such, but If I have to pay $500 a month or more to carry insurance, my life is pretty much over. I don't think most financial planners plan for this size of inflation. My health is bad, but not bad enough for disability. I will have to wait a couple more years for my wife to draw SS. WalMart is always hiring, but I don't think I can stand that long. I would be in fair shape without ObamaCare interference. I thought I would have to face mega inflation for this year, but with ObamaCare taking hundreds of billions out of the economy, probably not so much this year. Obamacare will act like a large tax increase on the economy. Many are predicting 3% GDP increase this year,......really? I don't think anyone understands just how bad this will be with 100million out of insurance. How many will be ABLE to pay 50% more for insurance? Homes will be lost again, cars gone, debt through the roof.
When you are looking at retirees making maybe $25,000-36,000 a year, they can't afford this kind of dislocation. Maybe $50 a month or so, but many are talking about doubles and triples.
I'm a cancer survivor with high BP and diabetes and cannot do without insurance for one day. This interference with my life could put me and the wife under a bridge. We will quickly move from the middle class to the ghetto class overnight.
Maybe if I win the Lotto.
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