What is the standard federal income tax on an annual income of $785,000 for a married couple filing jointly?

Question

I am curious because it has been reported that was the income of the Bushes this year. I found that the tax they reported paying (185k or 24.3%) was an amount I considered low, percentagewise, for that rate of income. I find it hard to believe that I (having considerably less income) am in a higher tax bracket than George and Laura Bush.

These are the things that make me long for our government to go ahead and repeal the 16th amendment, institute the Fair Tax, and restore sanity to the funding of our government. Do you know about the Fair Tax? Check out www.fairtax.org. Do your elected representives support the Fair Tax? Check out www.vote-smart.org to find out.

Answer 1

Read the article again. Their GROSS income was
$785,800 - their taxable income was 642,905 after deductions such as over $78,000 to charity and over $27K in real estate taxes on the ranch, deductions available to anyone who paid those amounts. Tax is calculated for them just like it is for you, on your TAXABLE income after deductions and exemptions.

The taxes on the taxable income came to 28.99%. They're in a 35% bracket, since they're married filing a joint return, with taxable income over $336,550, and pay 35% on the income over the $336,550, lesser percentages on the amounts below that, just like everyone else pays graduated rates.

I'm guessing that you're looking at your BRACKET, not your actual percent paid in federal income tax, when you say your rate is higher than theirs is.

And yes, I've read about fair tax, including the website. It would almost surely benefit me, but am not in favor of it because even with the "prebate" I believe it would hurt lower income people.

Answer 2

Wow, that first response was kinda harsh. But the Bush's payment is not low for that level of income. First you don't know what percentage of their income comes from long term capital gains, which are taxed at 15%. Secondly, the max rate on the AMT (to which the Bushes are probably subject) is only 28%.

When you say that you are in a higher tax bracket, are you referring to the marginal tax rate you pay on each additional dollar of income, or to the percentage of income you pay in taxes. You can be in a 33% tax bracket (marginal rate) and pay much less than 20% of your income in federal taxes.

Answer 3

if you're concerning the quantity you may earn that isn't influence your SS(operating at the same time as receiving SS previous to retirement age) is for each man or woman if you're concerning the quantity of your SS it really is taxable on your tax go back that ought to maintain on with to the way you record, together or one at a time, with diverse limits for each prestige

Answer 4

You do not have the facts so it is not possible that you can know if it is fare or not.

If you paid mire thn twenty percent then that is your fault. Make yourself aware of wht is and keep proper records and the tax bill goes down