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4 Answers

why did my federal and state income tax increase?

Asked by: tmoran 1415 views YA Discussion

I just started working again for the same employer I worked for in 2011 for the exact same salary except my federal and state tax withholding has increased from $ 58 to $ 82.5 per week and my state withholding from $ 41 to $ 47.5 per week. This may not seem like a heck of a lot to some people but ends up being more than $ 1600 over a year. The only difference is I am getting paid every 2 weeks now instead of every week in 2011. I thought the payroll tax cut was extended? What gives???
I live and work in NC. I have filed Married/Joint for the past 4 years. We did earn more than $ 49,000 for the first time in 2011. Would we be placed in a higher tax bracket?
My wifes tax withholdings have stayed the same from 2011 to 2012.
Bi-weekly amounts are FIT- $ 165 and SIT- $ 95

How others found here:

  • why did my federal income tax increase 2013
  • did federal payroll taxes just increase??
  • why has my federal withholding tax higher now?

4 Answers



  1. Bostonian In MO on Apr 23, 2012 Reply

    The FICA tax cut was extended. Federal income tax rates are unchanged although indexing will result in slightly lower total tax liability all else being equal. Some states have adjusted income tax rates both up and down so without knowing what state you work in it’s impossible to say.

    More than likely you filed your W-4 and state withholding certificate differently this time around. Either that or you failed to file them at all so Payroll is withholding tax at the Single + 0 allowance rates.

    Edit: Are you sure that you changed from a weekly payroll to bi-weekly? Could it be semi-monthly? If you are paid bi-weekly there are 26 pay periods in the year but if you are paid semi-monthly there are only 24. That could account for the difference.

    Your earnings for 2011 wont’ affect the withholding rates for 2012 unless you also changed your W-4.

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  2. Bobbie on Apr 23, 2012 Reply

    The payroll tax cut is only on the FICA tax amount social security and medicare taxes NOT on the federal and state income tax amounts that are withheld as advance estimated income tax that would be reported in the Box 2 of your W-2 form as credit to be used on your 2012 income tax return during the 2013 tax filing season and IF the withheld FIT amount should be MORE than your FIT liability is when your income tax will be completed you might be able to QUALIFY for a REFUND of some are ALL of the withheld FIT amount at that time in your life.
    Hope that you find the above enclosed information useful. 04/23/2012

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  3. tro on Apr 23, 2012 Reply

    that’s called indexing
    you pay may be the same but each year the income is indexed and what you paid taxes on last year will be higher the next

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  4. Herrmann on Apr 23, 2012 Reply

    “for the exact same salary”
    “The only difference is I am getting paid every 2 weeks now instead of every week in 2011″

    If you are getting paid every two weeks instead of every week and your pay rate and hours are the same, then you are actually paying less tax.

    If you made $ XX and had $ 58 FIT withheld on a weekly basis, then the bi-weekly gross would be 2 x $ XX and the FIT should be twice the weekly or $ 116, not $ 82.50.
    ______________”
    We did earn more than $ 49,000 for the first time in 2011. Would we be placed in a higher tax bracket?”

    The tax tables assume yours is the only job so, no, this would not matter.

    ” working again ”

    Check to make sure they used your ORIGINAL W-4. If they had to set you up as a “new” employee, they may have entered a default S-0 or M-0. This would account fo a higher withholding.

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