Richardowen

Hi All,

Does anyone know how to find out what level of tax you will need to pay on your salary.

I'm not looking for a complete concrete figure just a ball park. For instance in the UK there are tax brackets, where you pay x% tax depending on what your income is after allowance. Does the same apply in the US ? If so where can I find the info ?

I've been looking at the IRS website and it's doesn't appear to be there.

Ta
Rich./

dbj1000

It's right there on the IRS website. Just search for 2006 Tax Schedule and there you have it.

Bob

and on top of the IRS site, do a google for your state to see what your state wants on top...

Richardowen

Right but this is not like UK where this is the amount taxed from your wages.
As far as I understand this what you would owe in tax if you had this as additional income outside of your salary.

What I'm trying to find out is how much the IRS is going to take out of my salary per month !

Ta
Rich./

dbj1000

No, you're incorrect. That link is to what will be taken out of your salary.

It's not rocket science, but by all means don't take my word on it.

EDIT: Perhaps you need me to provide a worked example?

I make $124,567 and I'm married, filing jointly:

If taxable income is over-- But not over-- The tax is:
$0 $15,100 10% of the amount over $0
$15,100 $61,300 $1,510.00 plus 15% of the amount over 15,100
$61,300 $123,700 $8,440.00 plus 25% of the amount over 61,300
$123,700 $188,450 $24,040.00 plus 28% of the amount over 123,700
$188,450 $336,550 $42,170.00 plus 33% of the amount over 188,450
$336,550 no limit $91,043.00 plus 35% of the amount over 336,550

I pay 10% of $15,100 = $1,510
I pay 15% of $61,300 - $15,100 = $6,930
I pay 25% of $123,700 - $61,300 = $15,600
I pay 28% of $124,567 - $123,700 = $242.76

In total, I pay $24,282.76

I hope that clarifies the calculation.

Tracym

You have some amount withheld from your salary. This is NOT your final tax amount, but rather an estimate.

Then, when calculating your tax as others have told you, first there are a number of exemptions that may apply when calculating the amount that will be taxed. It depends if you have children, own a home, etc.

Impossible to know exactly until the actual calculation is done.

You might owe more on April 15th, or you might get a refund.

Rete

A simple yahoo search that took 40 seconds gave me this website

http://www.pensoft.com/taxcalc.asp

It will calculate your federal, social security and medicaid withholdings. Add your state yourself.

Or you can try this one free for 30 days and it will calculate all taxes withheld including state and 401K, etc.

http://www.paycycle.com/welcome/?SC=...5C1EFACF94761D

Richardowen

ah I see - thanks !

Duncan Roberts

If you want to know exactly what they will take out of your salary, it's pretty much impossible to tell right off the bat. You tell your employer what designation you want to be and they will take that much out, you essentially set the amount that will be withheld within certain restrictions. At the end of the year if you paid too much you get it back, if you didn't pay enough you owe it. Throw in 401K contributions, various other non taxable things, business expenses and charity contributions, you wont know for sure what your final taxable amount is until you complete your tax return.