My tax bracket | TigerDroppings.com

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Jma313

# My tax bracket

Hey guys so I'm here at my first week of my first real job. I'm making a whopping 31,000 a year to start. How do I figure out which tax bracket I fall into? TIA

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Newbomb Turk

re: My tax bracket

Assuming you're single, You'll pay \$892 plus 15% of your taxable income over \$8920.

Keep in mind, you'll get a standard deduction of \$6,100 (assuming you're not itemizing) and a personal exemption of \$3,900. So, of the \$31,000 you make, only \$21,000 will be taxed.

Doing the math, you'll pay the \$892 plus \$1,812 (.15 x 12,080), for a total of \$2,704.

You'll also pay about \$2,371 in SS/Medicare taxes.

PurpleAndGold86

re: My tax bracket

quote:

So, of the \$31,000 you make, only \$21,000 will be taxed.

You aren't factoring any 401K contributions, insurance, or any other pre-tax deductions he might have.

Newbomb Turk

re: My tax bracket

quote:

You aren't factoring any 401K contributions, insurance, or any other pre-tax deductions he might have.

True. It's just an estimate. However, at that salary, it's doubtful he'll have any of that unless he's living with his parents and they are paying for EVERYTHING.

It does answer his main question -- he'll be in the 15% bracket.

Jma313

re: My tax bracket

Living with the rents for a year saving half the money I earn and paying off college loans with the other half. I'll start with 401k in a year or two when the loans are paid off

lynxcat

re: My tax bracket

The new standard deduction for 2013 is \$6,100?

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PurpleAndGold86

re: My tax bracket

quote:

paying off college loans with the other half

Then this is deductible also. You do not need to itemize to deduct student loan interest. Student loan interest is an above the line deduction.

You should be in the 15% bracket, but you need to take out all pre-tax and above the line deductions to get your TI.

Jma313

re: My tax bracket

Thanks!