How do I calculate my post tax income?

Question

My taxable income is $40,000, residence is in MD and I'm single. Not accounting for Health/dental insurance contribution. I work for a non-profit organization if that makes any difference.

By post tax income I mean after paying federal and state taxes, how much disposable income will I have in my pocket.

Answer 1

I would calculate it as follows:

Take the selling price of the posts and subtract the purchase price
of the posts. This is your profit and is fully taxable.
Add this to your taxable income. You can also deduct part of
your home as an office if you spend enough time there with post
purchasing and selling matters. Be careful! The IRS is very strict
regarding the home/office deduction.
Just out of curiosity what kind of posts are you selling?

Answer 2

by 40,000 do you mean gross income, because 40000 in taxable income seems high. but if it is, then it's 4220 plus 25% of taxable income over 30,650. 40000-30650=9350*%25=2337.50+4220= 6557.50. Therefore, your tax for 40000 taxable income is $6557.50.

But I think you might mean that your gross income is 40,000. Then, assuming you have no other deductions and do not itemize, your standard deduction is 5150 and your exemption is 3300. 40,000-5150-3300=$31550. 31550-30650=900*%25=225+4220=4445. Therefore, your federal income tax would $4445 minus the withholdings from your paycheck. If your withholdings are higher then you will get a refund.

As far as your state tax goes, I am unfamiliar with maryland's tax. I am from michigan and our tax is 3.9%. So it might be around that amount, but I'm not sure. Easiest way to do that is find the Maryland 1040 and go through the form to find your tax.

FICA and medicare will take out a total of 7.65 percent. FICA specifically only takes 6.2 percent out of the first 90,000 you make at your employer. So 40000*%7.65= $3060

I hope this information helps.

Answer 3

Your federal income tax will be somewhere around $4800. Social security/medicare will take another $3000 or so. Maryland will get about $2800 for state income tax. That totals $10,600, subtracted from your $40,000 leaves around $29,400 per year, or $2450 a month, or around $565 per week.

If there are local income taxes, that would come out of what's left.

Working for a non-profit doesn't affect your taxes.

Answer 4

Simple and most accurate answer is that you should look at your pay stub where it itemizes the deductions from your gross pay.

In addition to federal and state taxes you pay, you should also include any local taxes that are subtracted from your paycheck, as well as state disability tax (if any) and SSDI deductions when you calculate the total amount of taxes that you are paying.

Total all of the taxes that you are paying, subtract that amount from your gross pay, and then you have your post-tax income.