This ia a part of a project I'm working on, but I keep getting different amounts. If I didn't need an exact amount I'd just use 50% as the tax, but I need an exact amount.
$48,627,125 no fancy tax sheltering or deductions.
Can someone help?
2007-04-05 11:18:40 · 2 answers · asked by Pantamyme 1 in Business & Finance ➔ Taxes ➔ United States
Yes, 1099 earnings filed as Single.
2007-04-05 11:56:04 · update #1
No deductions, just the highest tax bite the US can take. LOL
I'd love to put 50%, honestly but I know that's not the true answer.
2007-04-05 11:57:29 · update #2
Would it be just w-2 wages? and is it just a single person, with no itemized deductions? That might be why you're getting different amounts. And I'm assuming you want only the federal tax effect?
2007-04-05 11:44:31 · answer #1 · answered by Anonymous · 0⤊ 1⤋
If the amount is on a 1099, it appears to be subject to self employment tax as well as income tax. The first link below is the 2007 Federal tax rate table. I come up with $16,998,567 for Federal income tax. I did not allow for ANY deductions or personal exemptions. Self employment tax comes to $1,421,867.40. That gives me a total of $18,420,434.40. The standard deduction, personal exemption, and partial deduction of the self employment tax should reduce that somewhat. Without knowing your state, I can't guess that rate. That comes to an effective rate of 37.9% for the IRS plus any state and local taxes.
The AMT (alternative minimum tax) is supposed to reduce the benefit of certain deductions for high incomes. Since no such benefits were used in my calculations, the AMT should not be a factor.
2007-04-05 14:27:53 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋