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What is the difference between federal and state income tax?
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Steps to Calculate Federal Income Tax
- Find the paycheck's gross pay (earnings before taxes).
- Determine the number of payroll periods in a year: ...
- Multiply the wages in Step 1 by the number of payroll periods in Step 2. ...
- Take the amount from Step 4 (a) of Form W-4 (additional income not from jobs; dividends, retirement, etc.) and add it to the wages from Step 3. ...
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