Tax bracket | TigerDroppings.com

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dischNoutTAspd
LSU Fan
Houston
Member since Nov 2009
909 posts

Tax bracket



I'm not a OT baller so bear with me .
EDIT : how do I file on my w-4 for least amount taken from my check ? I am single with no kids .

I just got a raise from 35k to 38k

I am filing single . (Not married , no kids )This means that my 15% tax rate will bump up to 25% meaning ill actually be making less ... Correct ? If so can I do anything different as claiming goes so this doesn't happen or am I fricked ? Doesn't make sense . Thanks



This post was edited on 1/9 at 12:25 pm



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Cajun Revolution
George Washington Fan
Member since Apr 2009
44671 posts
 Online 

re: Tax bracket


File single and 0. You will still pay the 15% rate.



This post was edited on 1/9 at 12:00 pm


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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82698 posts
 Online 

re: Tax bracket


quote:

This means that my 15% tax rate will bump up to 25% meaning ill actually be making less ... Correct ?
No. The 25% rate is the "marginal rate" only on the amount of compensation over the tax bracket break point, not on your entire compensation.






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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1631 posts

re: Tax bracket


I always understood, you pay 15% on the first 35 or so that qualifies for that tax bracket, then you pay 25% on the income that exceeds it. I could be completely off.

So
15% of 35k
25% of 3k






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Tax bracket


quote:

This means that my 15% tax rate will bump up to 25% meaning ill actually be making less ... Correct ? If so can I do anything different as claiming goes so this doesn't happen or am I fricked ? Doesn't make sense . Thanks


No. Our tax system is progressive.

You are taxed at 15% for all money at or below the set limit (I don't know what it currently is).

Then, any money above that limit is taxed at the next highest rate until it reaches the next limit.

For example. Say you make 38k, and the limit is 35k.

The first 35k will be taxed at 15%. The next 3k will be taxed at 25%.






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drewnbrla
LSU Fan
The Dark Side of the Moon
Member since Mar 2011
4166 posts
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re: Tax bracket


2012 individual federal tax brackets.

10% on first $8700= $870 total for bracket
15% on $8701 up to $35,350 ($26,649 gap)= $3,997.35 total for bracket
25% on $35,351 up to $85,650 ($50,299 gap)=$12,574.75 total for bracket






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jimbeam
USA Fan
University of LSU
Member since Oct 2011
32017 posts
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re: Tax bracket


Better to make more money. Just as these guys have shown





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CHSBears
Texas A&M Fan
Baton Rouge
Member since Aug 2007
520 posts

re: Tax bracket


Based on taxable income, not gross.





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dischNoutTAspd
LSU Fan
Houston
Member since Nov 2009
909 posts

re: Tax bracket


Bump





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