I just completed an out-of-court settlement with my former employer, for the amount of $7,000.00. In our contract he said he (by law) must deduct all tax requirements from this check. So...I was concerned about the amount so he said fill out a new W-2 for me (which I did) with many deductions so very litttle will be deducted from the check. I got the cashiers check in the mail today and a whopping $1,633.80 was deducted from my $7,000.00. I claimed 20 allowances/deductions (what ever they are called). With thsi many dedustions, should this huge $1,633.80 have been deducted? Is this a correct amount to deduct? HELP please...confused. I am aware there will be a big amounty at the end of the year I would be responsible for (of course) with the big amount of deductions but darn...
You forget that there is also social security taxes and state and perhaps local income taxes withheld. Get a detailed breakdown and then have it looked at by a tax attorney or a good tax accountant. It may be that this amount id in fact correct but you need the details.
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You are not going to help yourself by posting the same question in parts several times. Please understand that we all volunteer our time to help and this is not considerate of that effort,. You said the $75 was for a tax garnishment to the IRS so you know what that is and as I said, the levy or garnishment has to be honored until the employer is told otherwise. Your telling them you paid it is not enough. This is a legal forum, not a CPA forum so take this stub to your tax preparer for confirmation. NEXT TIME, don't do this yourself. This all should have been part of the settlement process.
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