|
|
| *Loan,banking and credit>>>tax bracket |
How do they figure out how much tax you owe? How do they determine your tax bracket? |
I am trying to figure out my taxes. I used HRBlock.com to fill out my taxes, but I'm confused. My AGI is $32,643 and I have itemized deductions of $10,498. It says my taxable income is $18,845 (I guess that includes some adjustments). But then it says that I owe $4,424 in taxes. Where does this come from? I thought taxes were figured on your taxable income. But 15% of $18,845 is $2827 and 25% of it is $4,711. And I don't know of any tax bracket between these. Also, I'm considering contributing to an IRA if it would bring me to a lower tax bracket. What determines your tax bracket? Your AGI? Your taxable income?? Thanks Your taxes are figured on your taxable income. Contributing to a Traditional IRA would lower your taxable income. Contributing to a Roth IRA would not. I don't know anything about H & R Blocks website. I use TurboTax to do my taxes. I've never had a problem with it figuring out my taxes, including capital gains/losses. I highly recommend it. ask your accountant appears that you are single so your tax liability would be $2446, but then you have to deduct the W2 withholding to get down to your balance due or refund. the 10% tax bracket is up to $7550, then you are in the 15% bracket. no way you should owe 4 grand. something aint right. your income is low enough to quailify for free file ... go to irs.gov. you dont HAVE to free file but just use one to double check yourself. your taxable income determines your tax bracket. tax accountant. $4,424 is more than you would owe in federal income tax on $18,845. However, if you were paid as an independent contractor and therefore received a 1099, you would also owe 15.3% self-employment tax on some portion of that income. You tax bracket is determined by your taxable income. It is really a "marginal" rate. The first dollars, to some limit as someone above mentioned, are taxed at 10%. The next dollars at taxed at 15%, again to a limit, and so forth. The bracket refers to the rate you pay on your last dollar of income, not the average paid over all your income. Something isn't adding up here. If you're single with no dependents, or married filing separately and no exemptions other than your own, then the itemized deductions you list would bring your taxable income to $18,845 as you said ($32,643 - $10,498 deductions - $3300 for one exemption). But income tax on that amount would be $2446 if you're single or married filing separately. Is some or all of that income from self-employment? If so, in addition to income tax, you'd owe self-employment tax which could be substantial and could bring the total that high. Income tax is figured on your taxable income, not on your AGI. But brackets don't mean that ALL of your income is taxed at that rate. Some of it is taxed at 10%, then some at 15%, and so on until you hit the bracket you're in. For example, if you're single, the first $7550 is taxed at 10%, then the next $23,100 at 15%, then if your taxable income is higher than that, the next portion is taxed at 25%, and so on. If your income is NOT from self-employment, then something is wrong with the calculation to show tax of $4424. |
| Tags |
| tax accounting tax advice tax attorney tax bracket tax calculation tax calculator tax credit tax cut tax deduction |
SiteMap--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |