Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Just to add a bit to what PaulEA says in #44802, the number on Line 39 of your Form 1040 is your Taxable income, not your Adjusted Gross income or income that includes tax-free municipal bond interest and stuff like that.

So suppose, as PaulEA does in his example, that your gross is $50K and you are single and taking the standard deduction. Then that $50K is reduced by $4400 for the standard deduction and $2800 for a single person's exemption, making the taxable income $42,800. So it's even, a little bit, sort of, better than you might believe if you read Paul's post in total ignorance. But what he says is quite right.

Tax brackets are found on Page 71 of this year's Form 1040 Instructions.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement