I'm not a CPA and I don't know all the minor hitches or things I'm missing calculating out what my tax bill should be. Using 2014 numbers for everything, I calculated what my tax bill would be if I got the maximum deductions possible to see if I'd still have enough left over to live on + emergencies. Important bits of information: I live in NJ, work in NYC. Yearly earnings 60k. Max tax-advantaged investments: $26,300.
Income left after investments: $33,700, from which taxes will be taken out.
FICA taxes on $56,700 (reduced from HSA): $4,338.
$33,700 - standard deduction ($6,200... maybe head of household?) - 2 exemptions ($7,900) = $19,600
Fed taxes on $19,600: $2,486 (or $103.60 per paycheck)
NY taxes on $19,600: $999 (or $41.63 per paycheck)
Total taxes: $7823
$33,700 - $7823 = $25877 leftover. Need ~$27000/yr, however, this calculation ignores untaxable SSI of 534/mo * 12 = $6408.
$25877 + $6408 - $27000 = $5285 ($440/mo surplus).
As NY tax rates are higher, I should not have to pay anything in taxes in NJ. As I don't live in NYC, I shouldn't have to pay NYC taxes either (I think). If I'm missing anything, forgetting anything, etc, let me know! I want to be able to run the calculation come Jan 1 to get my withholdings right.
That's the other thing. If I know exactly what I should be withholding down to the cent, how do I make it so that I get a check back for less than $10 (but not under so I have to pay anything)? How do I know how many exemptions + $ amount I should use in order to get it accurate. I've only recently come into MMM this year, so next year this would apply. This year, I could stop giving the gov't money and they'd still owe me.
RE: head of household. I am unsure if this would be what I am next year. Pitagirl (girlfriend) is on SSI, can't work. I will qualify for her as an exemption, but would I also be head of household since we are unmarried but she is my dependent?