If you made 12500 a year how much would you take home a month after tax?

Answer 1

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. THE AMOUNT ONE RECIEVES "BACK" AS A REFUND IS SIMPLY HOW MUCH THAT IS LOWER THAN THE AMOUNT THEY PAID IN AS ESTIMATED PAYMENTS - OR IN MOST CIRCUMSTANCES - THROUGH PAYROLL WITHHOLDING. You actually controll how much that was when you completed your W-4, and hopefully it is about right fior the amount needed to be paid, or you incur penalties and interest.