At what earnings levels do your tax percentages go up? What are the percentages for each income level?

Question

I want to figure out the best income for our family. When I didn't earn a wage we always recieved a refund. Just by adding 20000 to our income we now owe taxes. I want to figure out where that cutoff is. How much can I contribute before we are actually loosing money by my working because of a higher tax percentage.

Answer 1

There's no point at which you lose money by working, since the highest bracket for federal is 35% (and that only cuts in at $335,500) so at worst you get taxed that much. The way the brackets work is that only the income OVER the bracket limit is taxed at a higher rate, so the amount already earned wouldn't be taxed higher than if you didn't have the other income, and the new amount wouldn't be above 35%. There's state taxes also, but they wouldn't come anywhere near having taxes eat up what you make, or more than that.

If you owe, you're not having enough taken out. You have to look at your total tax, not at your refund - the refund is only giving you back your overpayment.

For married filing a joint return, the 33% bracketstarts at 188,450, the 28% bracket starts at 123,700, the 25% bracket starts at 61,300, 15% starts at 15,100. If you're in a particular bracket, that doesn't mean that ALL your income gets taxed at that rate, just the amount over than limit.

Answer 2

Refer to the "Tax Rate Schedules" immediately following the Tax Rate Tables in your Form 1040 instruction booklet.

Answer 3

If you really really want to know,, go to a post office or IRS office and get a 1040 instruction book. Tax tables in that book will show you every thing you want to know about tax rates and income levels,, and many many other things you may want to know about income tax.

Answer 4

have you ever attempted to find the law that says you have to file or pay taxes on personal income ?......surprise, there is none! ask any tax professional or attorney to help you find this law. no, iam not crazy..this is the gods honest truth. check it out.