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re: Explain federal tax brackets to me...
Posted on 7/16/22 at 2:11 pm to finchmeister08
Posted on 7/16/22 at 2:11 pm to finchmeister08
quote:
At what point would the standard deduction be calc’d into the equation?
Always. 25,900 for MFJ. 12,950 for Single
The question is not When but if the deductions you have are greater than the standard deduction. If you itemize, youll need support for the itemization for each deduction you are claiming.
If you and your wife only have W2 income, there's probably not much beyond child related tax credits and deductions and mortgage interest that you will qualify from.
Disclaimer: I am not a CPA. Seek the advice of a tax professional.
0
Posted on 7/16/22 at 5:05 pm to finchmeister08
quote:The standard deduction or itemized deduction (see horsesandbulls post) is factored in to reach your taxable income. In the most basic sense, you take gross income, less the deduction (again, itemized or standard depending on your situation), and the result is your taxable income. There are other "above the line" deductions, but that should answer your question.
At what point would the standard deduction be calc’d into the equation?
Posted on 7/16/22 at 5:21 pm to Niner
quote:
Payroll tax rates double if you're self-employed.
True, but I used to deduct half from federal.
Now I just have a side job.
Max SS at job.
Still have to pay 1-2% Medicare tax on it though.
I hate income taxes.
If it was all sales tax at least you could decide if the purchase is worth the tax.
Dividends are taxed twice. At the company then when distributed to individual.
They tax us plenty and mange to spend more and more on things that are not necessary.
Posted on 7/16/22 at 6:19 pm to Niner
quote:
In the most basic sense, you take gross income, less the deduction (again, itemized or standard depending on your situation), and the result is your taxable income.
yeah, this is what i needed. thanks.
Posted on 7/18/22 at 7:51 am to slackster
quote:
For example - If you’re paid twice a month and one check is a commission check ($10,000) while the other is a draw ($1,000), they may withhold nothing from the draw check (annual income of $24,000 would have no tax liability for a married couple) and way too much from the commission check (annual income of $240,000 would require $39,000 in withholding, so $1625/chk on those 12 checks). You’d end up withholding nearly $5k more than your actually liability on your $132,000 of income as a result.
The withholding rate for bonus/commission is 22%. Any bonus or commission payout will always be 22% taxed for a w2 employee through their payroll.
Posted on 7/18/22 at 9:22 am to meansonny
quote:
The withholding rate for bonus/commission is 22%. Any bonus or commission payout will always be 22% taxed for a w2 employee through their payroll.
That's your withholding rates. That has exactly nothing to do with what your ultimate tax will end up being.
In fact... at 22 percent... those bonuses are often under-withheld.
Posted on 7/18/22 at 9:40 am to LSUFanHouston
His entire post was about withholdings and how they screw up.
Posted on 7/18/22 at 9:44 am to LSUFanHouston
quote:
In fact... at 22 percent... those bonuses are often under-withheld.
Actually, since the first 83,000 is taxed under 22% and the next 95,000 is taxed at 22%, it is more common for the bonuses to be withheld higher than the effective tax upon the return (that doesnt make underwithheld rare... just not as often as overwithheld).
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