Also, you're only looking at standard deduction. Add in a wifey or kiddos, you pay a lot less. If you own a house, keep track of all your road expenses in addition to per diem, clothing and work boots etc, your taxable income will be pretty low.
According to my math, a first year driver making $37,000 a year takes home more than a $40,000 year
Discussion in 'Questions From New Drivers' started by Xzay, May 21, 2016.
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Using that misunderstanding, a person earning $37,651 would pay over $9,400 in taxes, whereas a person earning $1 less would pay under $5,700 in taxes. IT DOES NOT WORK THAT WAY. I $1 increase in earnings WILL NEVER penalize you $3,700.
That was his point. It is not valid.spyder7723, 2Girls_1Truck and Oxbow Thank this. -
Ok then tell me how a tax program will calculate federal income tax on 65,000 AGI that is after deduction and credits
Last edited: May 21, 2016
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SS gets paid 1st your portion if employed is roughly 8%. If self employed or 1099 is roughly 16%
65000-37700=$27200 taxable at 25%
37700-10000=27700 taxable at 15%.
10,000 is taxable at 10%
There is your formulas you do the math.Last edited: May 21, 2016
Ryan423 Thanks this. -
Well actually the first 8,000 isn't taxed
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Heres a chart on the new rates, which is pretty close to what Tommy said. It just makes it a little easier to calculate without having to do all that math.
http://www.forbes.com/sites/kellyph...ions-exemption-amounts-and-more/#ae196c4792ebLast edited: May 21, 2016
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Bob Dobalina Thanks this.
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For 2015, the standard deduction was $6,300 for a single filer, and the personal exemption was $4,000. So a single person with no kids won't pay taxes on the first $10,300.justa_driver Thanks this. -
I was thinking they raised the 8,000 to 9,000 but not sure since it never applies to me lol. They suggest you file anyway in case you can take the low income credit.
Bob Dobalina Thanks this.
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