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Unread 2016-01-14, 02:20 PM   #9
ForcFed93
 
Join Date: Jul 2004
Location: Topeka KS
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Quote:
Originally Posted by evilpoptart View Post
Okay, I am admittedly ignorant when it comes to income taxes.

So from what I'm reading, you're only taxed at the certain rate when you reach that income.

So, if we made 80k joint (that's close) only 5k of our income SHOULD have been taxed at 25%. Right? So if it wasn't we would owe that amount or about $500. (5k * .15 = 750 and 5k * .25 = 1250)
If you made $80k taxable income gross without any deductions or credits your tax liability would breakdown as follows:

10% on your first $18450 = $1845
15% on the $18450-74900 income which is $56450 = $8467.50
25% on the final $5100 of income = $1275.

Anything over $74900 is 25%. Anything before that is less. So if you made $84900, tax on the last $10k would be $2500.

Make sense?
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