Taxable Income Gross Income
Question: How do I determine Taxable Income?
My husband and my Gross income for last year was 66k. This year it will be higher. I am reading that once we pass 68k that we will be taxed at 25% instead of 15% which of course sucks. But my real question would be is that is that 68k based on your Gross income that you start out with or is that based on the amount you are taxed on. Does taxable income = Gross income, or adjusted gross income after personal exemption, kids, and such. Just want to know ahead of time so we can plan to be screwed next year.. or not
Answer: The Federal income tax works out to right at $8,000 on your income. You failed to deduct your personal exemption and standard deduction. The first $8k or so after that is taxed at 10% and then upwards from there.
Social Security and Medicare taxes will add up to about $4,260.
You’ll pay about $2,900 in CA state income taxes and CA SDI tax.
Your net take-home pay will be within pocket change of $40k per year.
http://www.planningyourtax.com/
A To-Do List for Income-Focused Investors
Detailed are some ways to protect yourself in an uncertain bond-market environment.
Buying a Home in 2010… Taxes Do Matter
