BF2S Forums Taxes

Is that 35% for the entire income? Because in Australia we have thresholds and amounts earned above a certain threshold are taxed higher, but only for the amount within that threshold (I hope that makes sense).

Bout three fiddy.

Aren't income taxes based on more factors than just what you earned?

Approximately $60,037 after State/City income taxes are factored in.

NYC income tax rate is 3.648%
NYS income tax rate is 6.85%
Federal income tax rate is 28%
SS withholdings are 6.2%
Medicare withholdings are 1.45%

Start at the bottom and work your way up. Medicare/SS aren't included in taxes so you go 100k * .9265 to get what your federal taxes would start with. That takes you down to $66,700 after federal income taxes. After that you get another 10% lopped off for the state/city so .1 * 66,700 gets you your answer of approx $60,037.20

Hmmm, I see why people cheat on their taxes.

still laughing. . .

Come to the Dark side ! We have been waiting for you . .  .   .

Jaekus wrote:

Is that 35% for the entire income? Because in Australia we have thresholds and amounts earned above a certain threshold are taxed higher, but only for the amount within that threshold (I hope that makes sense).

He's wrong.

We have thresholds too.

Here they are: http://en.wikipedia.org/wiki/Income_tax … ted_States

10%  $0 - 8,375
15%  $8,376 - 34,000
25%  $34,001 - 82,400
28%  $82,401 - 171,850

Those are the relevant ones for this discussion.

Assuming no deductions, the federal taxation would be: $21,709.25

NY state income tax is also graduated.

4%  $0 - 8,000
4.5%  $8,001 - 11,000
5.25%  $11,001 - 13,000
5.9%  $13,001 - 20,000
6.85%  $20,001 +

So, state taxation would be: $6,453, assuming no deductions.

When figuring in deductions these totals will be different, but again, without them, the end income taken home from $100,000 pre-tax is: $71,837.75

With deductions, he can take home much more.

Jaekus wrote:

Yeah, that's the same situation here. Last financial year I paid about 7.5k in tax, but got almost half back through deductions (travel and I was also taxed on allowances I get through work which I'm not meant to be taxed on).

We have something called the AMT, but it only applies to income beyond the first $47,450 you make.  It's a mandatory percentage you must pay in income taxes that you can't deduct below.  Higher earners typically end up deducting down to that minimum %.

Turquoise wrote:

Jaekus wrote:

Is that 35% for the entire income? Because in Australia we have thresholds and amounts earned above a certain threshold are taxed higher, but only for the amount within that threshold (I hope that makes sense).

He's wrong.

We have thresholds too.

Here they are: http://en.wikipedia.org/wiki/Income_tax … ted_States

10%  $0 - 8,375
15%  $8,376 - 34,000
25%  $34,001 - 82,400
28%  $82,401 - 171,850

Those are the relevant ones for this discussion.

Assuming no deductions, the federal taxation would be: $21,709.25

NY state income tax is also graduated.

4%  $0 - 8,000
4.5%  $8,001 - 11,000
5.25%  $11,001 - 13,000
5.9%  $13,001 - 20,000
6.85%  $20,001 +

So, state taxation would be: $6,453, assuming no deductions.

When figuring in deductions these totals will be different, but again, without them, the end income taken home from $100,000 pre-tax is: $71,837.75

With deductions, he can take home much more.

you have to take out medicare and ss first. And what I did was very rough.

cpt.fass1 wrote:

I remember when I was 23 and making 32k at a job and I got a raise up to 35.. Was so excited about the pay increase to actually get a reduced check.

What??
That can't be true, there is no way your tax rates can be that retarded?

DrunkFace wrote:

cpt.fass1 wrote:

I remember when I was 23 and making 32k at a job and I got a raise up to 35.. Was so excited about the pay increase to actually get a reduced check.

What??
That can't be true, there is no way your tax rates can be that retarded?

There was a time when income tax rates weren't so graduated as they are now.  Income to percentage rates were much more simple.  So simple, that you could make enough charitable donations that you could qualify for a lower tax rate, effectively owing less taxes and actually getting back more of your money.