Tax bracket question....

[gris gris]

Can someone explain tax brackets to me and at what point does a salary reach the higher bracket?? TIA

 

[sorul82?]

Here you go.....from the IRS website:


If taxable income is over-- But not over-- The tax is:
$0 $7,825 10% of the amount over $0
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
$31,850 $77,100 $4,386.25 plus 25% of the amount over 31,850
$77,100 $160,850 $15,698.75 plus 28% of the amount over 77,100
$160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850
$349,700 no limit $101,469.25 plus 35% of the amount over 349,700

If you make 50,000 you pay:
4386.25 + 4537.50 = $8923.75

Is this what you were looking for?

 

[gris gris]

Here you go.....from the IRS website:


If taxable income is over-- But not over-- The tax is:
$0 $7,825 10% of the amount over $0
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
$31,850 $77,100 $4,386.25 plus 25% of the amount over 31,850
$77,100 $160,850 $15,698.75 plus 28% of the amount over 77,100
$160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850
$349,700 no limit $101,469.25 plus 35% of the amount over 349,700

If you make 50,000 you pay:
4386.25 + 4537.50 = $8923.75

Is this what you were looking for?

Yes! Thanks. Then would you take the $8923.75 and divide it by 52 for the weekly deduction (or by 12 for monthly)???

In the past year I went from the 25% bracket to the 15% bracket but am thinking of finding another job, and am wondering how much of a tax whack I'd take. Then I have to figure CT income tax too

 

[Cheshire Figment]

This is not really accurate. The tax bracket is based on Net Taxable Income, which is Gross Income less certain deductions, then subract out either the standard or itemized deductions, and then subtract out the personal exemptions.

For example, if you are single with no dependents and your income was $50,000 (in 2006) your standard deduction would have been $5,150 and your Personal Exemption would have been $3,300, so your Net Taxable Income would have been $41,550 and your tax (and the table in the reply was for Single Individual) would have been $6,811.

Your easiest thing to do is follow the instructions for the W-4 Withholding Form and probably claim Single 1 or Single 0. Then a fairly accurate withholding will be taken.

Mike (CPA Retired)