2007-09-11 04:47:06 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I am cashing a life insurance policy . That is what it is worth.i am single and i make about 35k a year. I need the money for a down payment on a car.
2007-09-11 07:16:21 · update #1
Depends on what type of income it is, how much other income you have, are you a dependent of someone else, and what your filing status is. If it's capital gains income, it's subject to maximum rate of 15% (5% for those in 10% or 15% bracket). If it's regular income it would be subject to your regular tax rate. If it's self-employment income, it would be subject to self-employment (SE) tax, which would be 15.3% of 92.35% of net self-employment income. If that is your only income for the year, the only tax that you would be liable to pay would be if it was self-employment income. The tax on that would be $595 (4,213 x .9235 x .153). But without knowing if that is the only income you have or if you have other income there is no way to give you a more accurate number.
2007-09-11 05:39:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You don't pay any federal tax if you are Single Dependent and your income is up to $5,350, and if you are Single and no one can claim you dependent and your income is up to $8,750.
On your income from job, social security and medicare taxes are withheld at 7.65%.
If you have self-employed income, you must pay social security and medicare taxes at @15.3%. For this you file Schedule SE (Form 1040) Self Employment Tax.
2007-09-11 05:35:15 · answer #2 · answered by MukatA 6 · 0⤊ 0⤋
Unfortunately its not that simple question, it all depends on your tax bracket, how much you make a year, your filing status (Single, Married Or Head of household). it's a combinations of many things that you need to take into account.
2007-09-11 05:06:30 · answer #3 · answered by Carlos 1 · 0⤊ 0⤋
Depends
Is that for the whole year?
just one pay check? a bonus or commision?
Stock sale?
If it is a stock sale, and you have owned 2 or moe years, you only pay 15% of the profit.
Of course when the FAIRTAX ACT H.R. 25 passes, you will have no income tax no withholding. Only a retail sales tax on new items only. check it out. www.fairtax.org
Frequently Asked Questions about the FairTax http://www.fairtax.org/fairtax/faqs.htm
2007-09-11 05:02:20 · answer #4 · answered by Anonymous · 0⤊ 2⤋
Somewhere between 0 and close to 50% depending on what it is what other income you have.
2007-09-11 05:00:29 · answer #5 · answered by Wayne Z 7 · 0⤊ 2⤋
None, if that was your only income for the year and was not self-employment income.
2007-09-11 05:23:36 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Depends on how you earned it, whether you are married or single, whether you earned other money, charitable donations, and other deductions.
2007-09-11 04:54:47 · answer #7 · answered by buffytou 6 · 0⤊ 1⤋