The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Dumb Question?||Date: 12/9/1997 3:28 PM|
|Author: TMFTaxes||Number: 857 of 122467|
How do I know what tax bracket I am in, I earnes around 32,000 net this year>>
The only REAL way to know your tax bracket is to compute your total income, less your adjustments to income, less your itemized deductions (or standard deduction), and less your personal exemptions.
THAT will give you your taxable income...the income on which you will pay tax. You then compare your taxable income to the IRS tax rate tables for your specific filing status in order to find your marginal tax rate (commonly known as your "tax bracket").
Simply knowing your "earnings" for any period of time will not help you out in finding out your tax bracket. Some computation is required.
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