Did your taxes suddenly go up?

[FIREoneDay]

Is there books or articles that you would recommend to learn more about W4 and taxes?  From going from being a resident to an attending, I thought I was prepared by still being frugal and investing in retirement with a higher salary.  I was not prepared for how much taxes were taken out of my paycheck and how much I was actually left with. Especially with FICA playing a role and the change in my taxes months later after I started working.

[Hawkeye225]

Agree.  FICA most likely.

[Peds]

ah the simple answers.

[FIREshrink]

both my taxes and take home pay went up today because last paycheck I maxed out my 403b for the year.

[Peds]

Yes.

[The White Coat Investor]

FICA is medicare and SS. But a high earner like a doc would "max out" their SS halfway through the year. So the change from December to January would see a drop in your take home pay.

[FIREoneDay]

I already get charged for medicare and SS.  Would FICA still apply?

[FIREoneDay]

Hi,

Nothing changed. I started working in VA in August and I wasn't charged for federal tax until today. Does this mean I am going to be charged that amount for every paycheck?

-FIREoneDay

[FIREoneDay]

Yes

[Zaphod]

The limit is now 127,200. Yeah, ouch.

[The White Coat Investor]

Peds wrote:

its probably your FICA. the limit is 118K per year, so at the beginning of the year its taken out. once you cross that limit its no longer withheld.

Click to expand...

Excellent thought. I bet you're right.

[Peds]

its probably your FICA. the limit is 118K per year, so at the beginning of the year its taken out. once you cross that limit its no longer withheld.

[The White Coat Investor]

Are you now single? Did you change your W-4? Are you now making more money? All of those could be reasons why your employer is withholding more taxes for you to help you avoid owing money come April 2018.

[East coast]

To clarify - based on the limited info you provided, your taxes did not go up. Your withholding went up.

[jfoxcpacfp]

Same pay and same pay period?