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j1 tax fluctuating

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  • j1 tax fluctuating

    Hi,

    The percentage of tax being witheld every month from my paycheck varies significantly. From less than 10% to almost 20%. What i find odd is that it's not constant, as in it rises all the time, instead it goes up and down.

    One month when i had a lot of overtime and received a significantly larger check, i got taxed at 20%. Two weeks later (it's actually bi-weekly) i got taxed at 14% for my average paycheck. The first ever check i received was for just one week, and there it was around 9%.

    Can someone please explain why does this fluctuate. I figure it could change once i reach a certain milestone, but not like this, i dont think i've earned more than 10.000 dollars so far.

  • #2
    Lets take totally hypothetical example.

    Let's say you make $1,000/month. In that case, you will make $12,000/year. Lets say you are taxed at 15%.

    However, lets say you make $2,000 in some month. In that case, payroll system assumes that you will make $24,000/year and taxes you at 20%.

    But in reality, if you made $2,000 only in one month, you will make $13,000/year and lets say your tax rate is still 15% or 16%. In that case, you will get the refund when you file your tax return.
    Immihelp Support
    No legal advice. Use at your own risk.

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