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current tax brackets
single
income 0-9,325..........10%
9,325-37,950.............15%
37,950-91,900...........25%
91,900-191,650.........28%
191,650- 416,700......33%
416,700-418,400.......35%(bracket is so small)
418,400+..................39.6%
married
income 0-18,650..........10%
18,650-75,900.............15%
75,900-153,100...........25%
153,100-233,350.........28%
233,350- 416,700......33%
416,700-470,700.......35%(bracket is so small but not as small as single)
470,700+..................39.6%
HOH
10%....$0 to $13,350
15%....$13,350 to $50,800
25%....$50,800 to $131,200
28%....$131,200 to $212,500
33%....$212,500 to $416,700
35%.....$416,700 to $444,500 (again this is a small bracket)
39.60%..$444,550+
new proposed rates
12%: $12,000 - $45,000 for individuals ($24,000 - $90,000 for married taxpayers)
25%: $45,001 - $200,000 for individuals ($90,001 - $260,000 for married taxpayers)
35%: $200,001 - $500,000 for individuals ($260,001 - $1 million for married taxpayers)
39.6%: $500,001+ for individuals ($1,000,001+ for married taxpayers)
no-body has mentioned HoH..so I am not sure what that will mean
So under the current system when is the standard or itemized deduction applied?
All sorts of problems with the mortgage-interest deduction. For one thing, because wealthier people own bigger homes with bigger mortgages, the benefit disproportionately benefits the rich. The same issue exist with SALT taxes. The mortgage-interest deduction also gives people an incentive to borrow as much money as possible — to buy bigger homes and make smaller down payments. That probably isn’t good for either homeowners or the economy.
SALT Deduction
The deduction for state and local taxes helps the rich even more than the mortgage-interest deduction. Eighty percent of the benefit goes to the top 20 percent of earners, and 30 percent to the top 1 percent. That’s hardly surprising
Inequality isn’t the only issue, though. “It’s in effect a subsidy for having higher taxes at a state level,” said Alan Cole, an economist at the Tax Foundation, a Washington think tank. If New York raises its state taxes, its citizens don’t actually have to pay for that full tax increase themselves because they can deduct the state taxes on their federal returns. Instead, taxpayers around the country are in effect picking up part of the tab.
So under the current system when is the standard or itemized deduction applied?
omg...have you ever looked at the 1040???
lines 7-36 are all your incomes...wages...alimony etc
line 37 end side one of the form...it is you total adjusted gross income
lines 40-43 are the:
ln40 std or itemized deduction
line 41 ..line 38 minus line 40
line 42...your personal exemptions (4k x total in household)
line 43...line 41 minus line 42...this is your taxable income
line 44 see tax table ..... this is the tax owed (based on the taxable income) not based on what you already paid into the system
Employer-sponsored insurance is income, even if most people don’t think of it that way. It costs companies money to provide it.10 It provides a benefit to the people who receive it. If you don’t get insurance through your employer, you have to buy it on your own out of pocket.
Both employers and employees have an incentive to shift compensation away from the type that is taxed (salary) and toward the type that isn’t (health insurance). That means people are getting more insurance than they otherwise would, which in turn could contribute to rising health care costs.
The more complex a tax system is, the more loopholes there are to exploit, making taxes easier to avoid and harder to enforce. And since the wealthy can afford the best tax lawyers, complexity will tend to make the system less fair as well.
Whatever the government taxes, people will use less of; whatever it taxes less, people will use more of; and taxpayers will exploit every loophole and technicality to minimize how much they have to send to Uncle Sam.
The people that will complain about this the most are people that don't even really pay taxes.
They're make signs and impede traffic while shouting about the 1% as they demand $15 an hour for a jobs you could train a monkey to do like making coffee or serving tables.
lines 7-36 are all your incomes...wages...alimony etc
line 37 end side one of the form...it is you total adjusted gross income
lines 40-43 are the:
ln40 std or itemized deduction
line 41 ..line 38 minus line 40
line 42...your personal exemptions (4k x total in household)
line 43...line 41 minus line 42...this is your taxable income
line 44 see tax table ..... this is the tax owed (based on the taxable income) not based on what you already paid into the system
Obviously not. It's so complicated that most people who don't do the 1040EZ pay someone else to do their taxes.
lines 7-36 are all your incomes...wages...alimony etc
line 37 end side one of the form...it is you total adjusted gross income
lines 40-43 are the:
ln40 std or itemized deduction
line 41 ..line 38 minus line 40
line 42...your personal exemptions (4k x total in household)
line 43...line 41 minus line 42...this is your taxable income
line 44 see tax table ..... this is the tax owed (based on the taxable income) not based on what you already paid into the system
What's a 1040?
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