How much does the IRS tax individuals? Can someone break it down into categories so I can get a better idea. I believe I am getting tax around 20% as a part time student. How does the TAX refund or owing works in the end of the year? Do people get taxes twice?
The IRS Federal Tax schedule is listed on the IRS website irs /formspubs/article/0,, For a single person If taxable income is over-- But not over-- The tax is: $0 - $7,825 10% of the amount over $0 $7,825 - $31,850 $782.50 plus 15% of the amount over 7,825 $31,850 - $77,100 $4,386.25 plus 25% of the amount over 31,850 $77,100 - $160,850 $15,698.75 plus 28% of the amount over 77,100 $160,850 - $349,700 $39,148.75 plus 33% of the amount over 160,850 $349,700 - no limit $101,469.25 plus 35% of the amount over 349,700
When you look at your paycheck stub, you must separate the taxes out. The 7.65% for fica/mc is not refundable. The federal income tax withheld (probably less than 10%) and state income tax is a prepay towards your tax returns next year. Local income tax is a fixed amount and not refundable. When you file, you take all of your income into account, subtract out the standard deduction, maybe a personal exemption (unless you are a dependent on someone else's return) and THEN you are taxed on the rest. If the amount of tax owed is less than the amount withheld, you will get the excess back. (If you still owe, you have to pay up.)
The IRS does not tax anyone. Congress does. The IRS only collects the taxes that Congress, not the IRS, imposes. The amount withheld from pay is an estimate. Annually, formal tax returns are filed to determine the correct amount that should have been paid. If this amount is more, the person sends the difference to the IRS. If the amount that should have been paid is less than the amount that was withheld, the IRS sends the person difference.
2008 Tax Brackets Tax Rate Single Married Filing Jointly 10% Not over $8,025 Not over $16,050 15% $8,025 - $32,550 $16,050 - $65,100 25% $32,550 - $78,850 $65,100 - $131,450 28% $78,850 - $164,550 $131,450 - $200,300 33% $164,550 - $357,700 $200,300 - $357,700 35% Over $357,700 Over $357,700
