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The amount one pays as income tax depends on their TAXABLE income. It is a percentage of that income. The exact percentage used depends on the level of that income. Taxable income depnds on many things: Earnings from employment for sure, earnings from other sources (investments, government payments, etc.), and even then certain items of each may be not included, or things you may not receive in cash may be included. For example - the contribution to a 401k is not taxable income, even though it is part of your salary. On the other hand, certain benefits you may receive, like employer paid life insurance, car allowances, even access to a cafeteria that has reduced prices because of an employer supporting it), may result in taxable income to you. Once the amount of taxable income is determined, then the deductions to that income are applied. For example, interest paid on the mortgage for your home, number of dependent children, number of other qualifying dependents, medical costs, certain expenses of making that income, state taxes paid, etc.). Hence, any 2 people, holding the exact same job at the exact same salary and benefits, may well have 2 entirely different tax amounts due. Once the amount of taxable income is determined, looking at the tax rate charts (made by filing status, for example single filer verses married filing jointly), for that income determines how much one actually must pay. I'll try and provide a link to a chart. And of course, how much you take home has many other things taken out other than Federal income taxes...State Tax, City, FICA, Worker Comp, Unemployment, medical contributions, retirement contributions, etc. etc.
What else can I help you with?
What is the difference between gross monthly income and net monthly income?
Gross is what you make before taxes and anything else is taken out. Net is what you take home after it is all taken out.
What form is used by a person earning an inconsistent monthly income?
A person earning an inconsistent monthly income typically uses IRS Form 1040 to report their annual income when filing taxes. They may also utilize Schedule C (Profit or Loss from Business) if they are self-employed or have freelance income. Additionally, they might consider using Form 1040-ES to make estimated tax payments throughout the year to avoid penalties. This helps manage their tax obligations effectively despite fluctuating income.
What does monthly profit mean?
a monthly profit means to make a profit every month in a company.
What is Pre tax Income?
Pre-tax income is the same as gross income OR the money you make before taxes are deducted/withheld.
How much federal income tax will you pay if you make 150000 and file married with 5 dependents?
If your taxable income is at least $100,000, you generally have to figure your taxes using a Tax Computation Worksheet instead of the Tax Tables. Your $150,000 gross income is reduced by standard deduction of $10,900 in 2008 ($11,400 in 2009) and personal/dependent exemptions of $24,500 ($25,550 in 2009) to taxable income of $114,600 ($138,600 in 2009). Then go to Section B Married Filing Jointly/Qualifying Widow(er) for the Rate, which is 25 percent (.25), minus the Subtraction Amount of $7,313 ($7,625 in 2009). The result is your tax of $21,337 ($20,638 in 2009). Your tax is reduced by any income tax that was withheld. Also, if you itemized instead of taking the standard deduction, your taxable income would be lower, which then lowers your tax.
How much is your monthly income if you make 67000 a year?
To find your monthly income, you divide the amount you make a year by 12 months. In this case, $67000 is divided by 12, so you make approximately $5583 a month.
How much does a music producer make monthly?
The average monthly income for music producers is $71,000. This is the same monthly average for film producers as well.
What is the difference between gross monthly income and net monthly income?
Gross is what you make before taxes and anything else is taken out. Net is what you take home after it is all taken out.
What is the maximum percentage of a borrower's income that can be used to make the monthly mortgage payment called?
Debt to income ratio
How much do you get monthly income on social security disability income?
How much money can I earn monthly while on Social Security disability Insurance
What is the best way to keep to a budget?
You should make sure that all of your planned monthly expenses do not exceed your monthly income.
How much money does Eminem make in a month?
in 2011 his monthly income was 950,000.
What is the miscellaneous of an doctor income?
It is the monthly budget amount of what that person make a year and what do they do and what kind of money they make.
What is the monthly salary of a makeup artist?
Door To Door Makeup Artist Monthly Salary 15k In Noida Delhi Location
How much does a psychiatrist make in a monthly income?
The monthly income of a psychiatrist can vary widely based on factors such as location, experience, and type of practice. In the United States, the average monthly income for a psychiatrist is around $12,000 to $20,000. However, this can be higher or lower depending on individual circumstances.
What is the monthly income of engineer?
Engineers make any where from $100,000 to $800,000 before taxes
How much do optometrist make a month?
The median yearly income for an optometrist in the United States is $116,000. This works out to a median monthly income of $9,666.67.
