I paid $928 in federal taxes (gross $4833.33) on my first salary of the year. I receive commissions once a month in addition to my twice-monthly compensation (this was a commission cheque).
The 401(k) was not deducted from wages. Even if they computed it based on my pay every time, I still ought to have paid just $870. I have nothing withheld. Would someone kindly assist with the explanation?
If you do not qualify for many deductions or credits, your taxable income remains higher, resulting in higher taxes. Common deductions and credits include those for mortgage interest, student loan interest, education expenses, and dependents, thus making the federal taxes so high.