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I'm sorry if this sounds like a stupid and basic question, it's something most adults should know, I guess. I am considering leaving a salaried position for one that is paid hourly (and paid much less, most people would think I'm out of my mind, but I am super-motivated for this job).
I found this on a tax blog:
From $0 – $26,250 you pay 15%, or $3,937.50
(for Married, filing jointly, it’s 15% of the first $43,850)
On the next $37,300 ($63,550-$26,250) you pay 28%, or $10,444
(for Married, filing jointly, it’s 28% of the next $62,100)
On the next $69,050 ($132,600-$63,550) you pay 31%, or $21,405.50
(for Married filing jointly, it’s 31% of the next $55,500)
So if you earn, say $40,000 per annum, and you live in New York (outside the city) which averages around 5%, you will pay a combined 33% in state and federal income tax?
If you made $25,000, again living in New York, you would pay 20%?
This would determine your withholding but deductions, both personal and itemized would reduce what you pay. What you really owe is the effective tax rate --your obligation after deductions--- which varies by individual.
Check the personal deductions totals, they should be close to $9500 for 2011. Meaning your 40k is really 31k adjusted gross income--the taxable part-- if you take the personals and don't itemize.
I used IRA every month to live on, too young for social security. I withdraw 4,000 and pay federal tax $800.00 but the bank does not take out NYC tax or State tax. Does anyone know how much I will have to pay New York City and State Tax for my 2014 taxes? Help!
Corky
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