What is the income tax that gets eliminated after reaching a certain level and what is the level?

Answer 1

The only tax that answers this question is social security tax. The amount for 2006 was $94,200 and for 2007 it will be $97,500. If you are lucky enough to have a combination of W-2 wages and/or self-employment income above that amount that is the point where social security taxes would stop having to be paid. If you had/have more than one employer during the year and had social security taxes taken out above that level you can claim a credit on your tax return for the excess tax that was taken out of your paycheck.

Answer 2

No such income tax item exists. Once your income reaches the taxable level for your filing status, every dollar earned is subject to income tax with no upper limit. In fact, the tax rate increases as your income reaches certain levels and maxes out at 35%.

Maybe you're thinking of the Social Security tax? For 2007, that stops once wages reach $97,500. For 2006, the magic number was $94,200.

Answer 3

You might be thinking about payments into social security - payments in are only collected up to a certain level, since benefits are only paid for earnings up to a certain level.

For income tax, it increases at higher levels of income until it reaches 35%, then stays at that level.

Answer 4

I'm not entirely sure what you mean since your question isn't specific, but there is no cap on "income tax". Regardless of how much you make, you will continue to be taxed on it.

For 2007, social security tax on wages stops at $97,500. Each year that number is adjusted. Since the rate is 6.2%, the maximum that can be deducted from your wages is $6,045. Medicare tax on wages has no such limit and its rate is 1.45%.

Self-employed individuals are also taxed for social security on their income up to $97,500, but their rate is 12.4%, or $12,090. Medicare is taxed on all self-employment income at a rate of 2.9%. This is taxed when the individual files their tax return as a separate self-employment tax.

If you are referring to something else, please add to your question.

Hope this helps!

Answer 5

Income Tax is never eliminated.

Social Security is the only tax that that has an upper income limit ($94,200 for 2006). I am not sure about 2007 but it is about $97k +/-.

Answer 6

hello!!!!!! the tax rate only goes higher the more your net income increases. sorry it is a false rumor started by one of the political parties that the rich pay less taxes. the rich pay the lions share of revenue to the government.

Answer 7

85% of it if you donate to the Republican party. You can be exempt from the laws of the land too and of course, be judge and jury without a trial on anyone who disagrees with you.
Only In George Bushs America.