Federal Tax Brackets

Federal Tax Brackets - this $ 8,025 minus 0 x.10 $ 802.50...

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Federal Tax Brackets Your tax bracket is the rate you pay on the "last dollar" you earn; but as a percentage of your income, your tax rate is generally less than that. First, here are the tax rates and the income ranges where they apply: If your taxable income is between. .. your tax bracket is: and % and % and % and % and % and % To take an example, suppose your taxable income (after deductions and exemptions) was exactly $100,000 in 2008 and your status was Married filing separately; then your tax would be calculated like
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Unformatted text preview: this: ( $ 8,025 minus 0 ) x .10 : $ 802.50 ( 32,550 minus 8,025 ) x .15 : 3,678.75 ( 65,725 minus 32,550 ) x .25 : 8,293.75 ( 100,000 minus 65,725 ) x .28 : 9,597.00 Total: $ 22,372.00 This puts you in the 28% tax bracket, since that's the highest rate applied to any of your income; but as a percentage of the whole $100,000, your tax is about 22.37%. This next calculator lets you try it out with your own numbers: ear: Status: ble Income: $ Tax: ...as a percentage of income: Tax Bracket:...
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This note was uploaded on 08/01/2011 for the course TAX 3300 taught by Professor Melnik during the Spring '10 term at CUNY Baruch.

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