Wednesday, February 29, 2012

I'm working in Virginia for the summer. There are two other summer workers here that are residents of Virginia, but I am currently a resident of Maryland. We all work full time (40 hours/ week), however it seems that every paycheck the other two summer interns receive about $40 more than I do. I'm told that Maryland's income tax IS greater than Virginia's, but does that sound like a correct margin of difference?|||I don't know as there are also other factors involved that determine how much state income tax is taken out of your paycheck. But each state sets that rate according to what their state legislation determines it needs to be set at.

Just like federal income tax is dependent on what you claim on your W-4, state taxes usually work the same way. A single person with no children will have more taken in state tax than a married person with 2 children (assuming their gross income is the same).

So if you take all factors into consideration (tax rate in the the two states, gross salary, withholdings claimed on W-4, etc.), a $40 difference is very possible.

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