48774373-Week-8-DQs - Refer to Section 3.2 of Personal...

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Refer to Section 3.2 of Personal Finance. What is taxable income and how do you know how much taxes are owed? Taxable income is the amount of income that is subject to taxes under the law. To figure out how much taxes are owed out of your taxable income for federal income taxes, you need to take your gross taxable income, income from all sources minus exclusions, minus your adjusted gross income, minus your exemptions, minus your credits, and you will see exactly how much you owe on federal incomes taxes. A great example for me is my own pay check. I have both taxable and non-taxable income on my paycheck daily. My taxable income is my standard pay, the amount I get for being the rank I am and being in so many years. The non-taxable income in the money the government gives married soldiers for food, since we don’t eat at the chow hall, and money to pay for housing on or off post. I have to calculate, at the end of each year, how much I made that is taxable and non-taxable. Being deployed becomes so much simpler because all pay is non-taxable and that’s exactly how I would file when I do file my taxes for the next year. Amanda: Taxable income is the portion of income that is the subject of taxation according to the laws that determine what are income and the taxation rate for that income. This reflects on how much money you make and what state that you pay taxes in. Every state is different when it comes to holding taxes with percentage. My husband is in the army and we live in the state of Georgia but since he enlisted in Maryland he pays Maryland taxes. So really the only way that you can know how much taxes you owe is by looking at your gross income which is the income
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This note was uploaded on 02/19/2012 for the course US 101 101 taught by Professor Keller during the Spring '11 term at University of Phoenix.

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48774373-Week-8-DQs - Refer to Section 3.2 of Personal...

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