When the time comes every year to pay your taxes how can you determine what amounts you owe? Is this some mythical number that is picked or is there a more logical approach? If you are a new or not so new taxpayer you will want to know the exact amount you owe. This can be determined by the withholding income tax table. Before you can use this you must first figure out a few things to make your computations.
What were your wages and income? This will determine which particular tax form that you will need to use. If you had a higher income you can only use certain forms. If you have a lot of credits such as a possible earned income tax credit you will use another form. Your marriage status will also determine the tax value that is listed on the withholding income tax table.
The tax amounts listed on the tax table are only based upon income from wages, and tips. This would usually be easily generated by the W-2 form from an employer. It is found at the back of each booklet that provides the information which explains how to fill the forms out. This is not so simple to determine if you've received a 1099 as a contract worker as no taxed were sent off by an employer. You should be estimating your taxes and sending a quarterly payment to the IRS. You will need to estimate as you won't know how much you've made until the end of the year.
There are three main taxes which are on these tax tables. They are the federal taxes, Medicare taxes, and FICA taxes. All of these are essential taxes needed by the federal government to fund its huge budget and programs each year. The pre-k program is one example of a taxed funded program. Medicare pays for those over the age of 65 that have contributed to the program. No one wants to pay these taxes, but we all realize that without them a lot of programs wouldn't be supported and states would also not get funds either. They need this money for the state budgets. Once you realize that the small amount we pay indicated by the withholding income taxable is nothing compared to the benefits gained.