How does the federal income tax work?

I’m 17 and I have a summer job umpiring baseball. Every check I pay into FICA and the Illinois State Income Tax. My most recent and also my largest check is the only time I’ve paid into the federal income tax. I made 99 dollars before taxes, and paid 1.44 in federal income tax which is the same amount I paid into Medicare. Why have I only paid into it once?

The withholding tables are set up in such a way that they assume every paycheck is the same paycheck you will receive throughout the year and withhold taxes accordingly. Since all of your other paychecks were smaller, it was assumed (if you had the same paycheck every pay period) you would owe no federal income tax and therefore nothing was withheld. If this larger check was the same for every pay period of the year, you would owe some tax and therefore some was withheld.

If at the end of the year you owe no federal income tax, you can file a return and have your withholding refunded to you.

3 thoughts on “How does the federal income tax work?

  1. The withholding tables are set up in such a way that they assume every paycheck is the same paycheck you will receive throughout the year and withhold taxes accordingly. Since all of your other paychecks were smaller, it was assumed (if you had the same paycheck every pay period) you would owe no federal income tax and therefore nothing was withheld. If this larger check was the same for every pay period of the year, you would owe some tax and therefore some was withheld.

    If at the end of the year you owe no federal income tax, you can file a return and have your withholding refunded to you.
    References :

  2. FIT withheld as an advance estimated tax payment for that pay period and will be included in the Box 2 of your W-2 form that you will receive after the end of the tax year during the 2014 tax filing season for the 2013 FIT 1040 income tax return form as a TAX CREDIT amount to be applied to any possible FIT liability at that time and when that TAX CREDIT amount from the Box 2 of you W-2 form is MORE than your FIT liabilty MIGHT be then you MIGHT be able to qualify for a REFUND of that withheld FIT amount during the 2014 tax filing season once you do correctly fill out your income tax return at that time. OK
    Hope that you find the above enclosed information useful. 06/17/2013
    References :

  3. if the person preparing the payroll has done it correctly, you would have had both SS and Medicare withheld each time
    as for any income tax, you could have filed your W-4 as exempt and no income tax would be withheld from either Fed or State if you do not anticipate earning $6100
    there a minimums at which no income tax is withheld and even for the state a gross of $99 probably does not require income tax being withheld, even for those who do not claim exempt
    References :

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