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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1275
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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I am retiring soon at the age of 52 from the state. My gross

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I am retiring soon at the age of 52 from the state. My gross salary will be $7147.00 but my net pay without taxes will be $5574.66 what will be my tax table. I am singel, no children and no #ss at the age of 65. My tax for state and federal will be, also I am thinking of living in Vegas. I own a house there. I know there is no state tax, but what should be my exemption for tax should be taken from my pay check.

Thanks,
Felicia
Felicia,

Could you please clarify what your question?

Regards,


Mark D
Customer: replied 6 years ago.

How much taxes should be taken out my retirement check, so I won't owe at the end of the year. Federal and State in California for a single, no children

Felicia,

Thank you for the follow-up. Could you please tell me about any other income and itemized deductions?

Regards,

Mark D
Customer: replied 6 years ago.
I have a rental properties, but lost on rent. I am not making any extra income with them. I am living now with the mortgage is 2700 a month taxes property is 3500. I can look on my tax form on what line to give you a better understanding of figures.
Felecia,

On your last return, what was the total itemized deduction amount?


Regards,

Mark D
Customer: replied 6 years ago.
It is $13,036.00
Felicia,

One last question, my apologies for missing it above, what makes up the difference between your gross and net wages?


Regards,

Mark D
Customer: replied 6 years ago.
My gross is 7147.00 x 78%= 5574.66 net
Felicia,

the amount you stated as mortgage payments and the total itemized deductions of last year do not seem right? Is the mortgage new, or is that for your rental?

Regards,

Mark D
Customer: replied 6 years ago.
Last year on four propertys the loss was 82,955 the unallowed loss was 57,955 and the allowed loss was 25,000
Felicia,

Assuming all things constant and with the information provided, you would want to have around $230 Federal and $60 CA withheld each month to about break even. If you do become a resident of Nevada, you would discontinue the CA withholdings. Please let me know if you have further questions.

Regards,

Mark D
Customer: replied 6 years ago.
One more question I will receive about $30,000 from the state for vacation, hoilday pay they said, the tax on this will be at 33% is this correct?
Felicia,

The withholding will be 33% but the actual tax rate will be based on your income tax return. In your case, you should see a refund of some of the 33% withholding when you file. Please let me know if you have further questions.

Regards,

Mark D
Customer: replied 6 years ago.
One thing, is it wise to not take taxes out and claim exempt and get the money now, and worry about oweing later, next year?
Felicia,

Generally, if you owe less than $1K when you file, you will have no underpayment penalties. Even if you owe more than $1K, you still may not, but typically you would. For 2010, if you are having 33% withheld on the $30K payment, you should be okay to not have taxes withheld from the monthly check until next year. Please let me know if you have further questions.

Regards,

Mark D
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