What exactly does income tax refer to?

Question

I am trying to calculate how much tax I need to be paying each year. I was looking at the IRS website at the income tax rates. It says filing as married, jointly for 2007 is $1,565.00 plus 15% of the amount over 15,650 for incomes between $15,650 and $63,700. Does income tax refer to only the federal withholding or everything combined (federal + state + medicare + oasdi + etc..)? If I anticipate making $63000 for 2007 in the state of Texas, how much total taxes should I expect to pay (this includes federal withholding, oasdi, medicare, and any other applicable taxes)? I want to know exactly how much I should expect per pay check (bi-weekly) if I have the exact amount of taxes withheld per paycheck so that at the end of the year I neither owe the IRS or have a refund.

Answer 1

First, you will owe medicaire at the rate of 1.45 percent of your 63,000 income for a total of $ 913.50. Then you will owe oasdi at the rate of 6.2 percent of your 63,000 income for an amount of $ ,906.00. Texas does not have a state income tax that I know of...so that amount should be zero. I have to guess a little on your federal income tax estimate. If you are married and do not file Schedule A, you will get at least 10,300 standard deduction and 6, 400 exemptions (these will be slightly more for 2007) for a total of 15,650 of deductions. You take this from your 63,000 gross income and get a taxable amount of $ 46,300. The tax would be approximately $ 6,162.50...which is 1,565 plus 15 percent of the 30,650 taxable income that is greater than 15650.00. The total of the taxes of 913.54 plus 3,906.00 plus 0 plus 6,162.50 is 10,982.00. When you subtract 10,982 taxes from 63,000 gross income you get 52,018 net take home (excluding any other items I don't know about) for an approximately weekly take home check of 1,000.00. However, don't ever expect to get exactly even with the IRS. Be happy to get within 500 either way at tax time.

Answer 2

most average people comes to about 25% total.. If you flux in your income more or less can be due, bonuses are taxed at a higher rate. look at past pay stubs and total the withholds and figure the percent of your gross that will be a ball park idea. in a perfect world you would come out exact but it never seems to work that way. Your income level also determines your tax level.