These change over time so the real basic idea for this video is to get the idea of how these brackets work.
So you started at a gross income of 50,000.
Once you know that number, youll need to look at the chart on page 35 of Publcation 15 to find the value of each withholding allowance, based on your pay frequency.
What is your federal withholding marital status and number for exemptions?At the end of the tax estimator, it gives you advice as to whether or not you should change the withholdings on your tax forms. .And many people say, Ok, 40,000 it falls into this bracket right over here.If you have never tried Turbo Tax, you can get a feel for what its like by using the.Your employer will also separately, this is the part that gets taken out of your salary.So the first thing we need to think about is what is our taxable income.What is the paycheck date?
Get the calculator out.
If you havent already received your W-2 or 1099s in the mail, use your last paycheck as a guide to see how much you made and what you paid in for federal and state taxes.
Its not a bad idea to update your W-4 annually.
You contribute 10 to your 401(K pay health insurance premiums of 300 per month, dental insurance premiums of 100 per month, and you contribute 100 per month to your flexible spending account.Im not going myanmar zawgyi font in windows 7 64 bit to go into a bunch of depth right over here, but if we just assume that you are a very plain, vanilla tax filer.These brackets might change from year to year.So lets calculate what that is going.So 3,825 in your share of fica taxes.I, once again, have trouble typing in a five there.The taxes and the fica taxes that are taken out of your paystub essentially.And then to that, were going to pay 15 on the next increment up to 36,250.Youd take the standard deduction.