The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Penalty for reaching next tax bracket? Date:  3/23/2007  4:48 PM
Author:  snippee Number:  93234 of 127549

It appears that if I earn enough to push my income over $61,300...

One last thing to add to the excellent explanations of how the tax brackets work: They are figured on taxable income, not gross. IOW, it's your income (salary, capital gains, etc.) less any adjustments and/or deductions (pre-tax retirement contributions, student loan interest, exemptions, etc.)

So, if your salary is nearing $61,300, you're still probably a ways away from the next tax bracket.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us