i need help on this one.! i really don't know how
The tax brackets work in STAGES. I'm making up the following thresholds as an example: $0 -- $50,000: 15% $50,000 -- $100,000: 20% $100,000 -- $200,000: 23% $200,000 and above: 25% This means that if you make $45,000, your entire income is taxed at 15%. But if you make $55,000, then the first 50K is taxed at 15% and the last 5K is taxed at 20%. If you make $110,000, then the first 50K is taxed at 15%; the second 50K is taxed at 20%; and the last 10K is taxed at 23%. YOU CAN NEVER MAKE LESS MONEY BY MAKING MORE MONEY. People who complain about a raise putting them in a higher tax bracket don't understand how tax brackets work. The instruction form for IRS 1040 helps you figure out these thresholds. E.g., in the example above, if you make $55,000, the IRS will tell you that your taxes are $750 (which is 15% of $50,000) plus 20% of the amount greater than $50,000. In this example, then, your taxes are $750 plus 20% of $5,000. The IRS website will show you the actual tax brackets and tax rates, adjust it if you're married, single, have kids, etc. Good luck.
Go to irs . pull up 1040ES. pull up 1040ez. Then for different taxable incomes calculate the tax. As you have more income, you move into a higher tax bracket for the NEXT dollar you owe.
the more you make the more you pay
Here are the tax brackets for 2011 for Single and Married filing jointly: Tax Bracket Single 10% Bracket $0 – $8,500 15% Bracket $8,501 – $34,500 25% Bracket $34,501 – $83,600 28% Bracket $83,601 – $174,400 33% Bracket $174,401 – $379,150 35% Bracket Over $379,150 Tax Bracket Married Filing Jointly 10% Bracket $0 – $17,00015% Bracket $17,001 – $69,000 25% Bracket $69,001 – $139,350 28% Bracket $139,351 – $212,300 33% Bracket $212,301 – $379,150 35% Bracket Over $379,150
