If I make $1millon in one year and have 4 dependents and about $175000 in itemized deductions, approx how much income tax will I pay?
2007-07-21 13:03:39 · 4 answers · asked by popydude13 2 in Business & Finance ➔ Taxes ➔ United States
Not enough information to tell you exactly. Based upon the limited information you provided between $261,000 and $350,000. This greatly depends upon your filing status, what deductions you claimed and how they affect the calculations of AMT.
Edit: You can ignore the person below who says get out of paying taxes the legal way. The article he links to basically tells you to break the law. A U.S. citizen has to pay income taxes on their income even if they live in another country. Setting up a corporation in Ireland, may be legal to avoid corporate taxes, but any money you earn from that corporation is taxable. Also, setting up an offshore bank account is legal, but keeping it a 'secret' from the IRS, is not.
2007-07-21 14:06:18 · answer #1 · answered by NGC6205 7 · 0⤊ 0⤋
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2007-07-21 15:23:03 · answer #2 · answered by Gediminas V 2 · 0⤊ 0⤋
You will be subject to AMT (alternative minimum tax) and most of your deductions will be phased out b/c the income level is so high.
You're looking at approx 35% or $350k.
Here's the IRS AMT calculation assistant if you have more details on your situation. http://apps.irs.gov/app/amt2006/index.jsp?ck
2007-07-21 14:12:04 · answer #3 · answered by kathi 2 · 0⤊ 0⤋
Figure close to $348K for federal.
2007-07-21 13:50:38 · answer #4 · answered by Judy 7 · 0⤊ 0⤋