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Financial Planning / Tax Strategies


Subject:  annual taxable income for 2004 Date:  7/26/2005  11:24 PM
Author:  financeguy82 Number:  80111 of 131379

I have tax-related questions and I was wondering if you're familiar with filling out tax forms. My 401K savings plan is effective this week and so far, I've put down 6% of my base salary since I have company contribution (match). That's when I started to think more closely about my annual taxable earnings. For 2004 tax schedule, taxable income not over 29,700 will put individuals in the 15% tax bracket and under. For standard deductions, singles have up to 4,850. In order for individuals to be taxed at the 25% tax bracket, do they have up to 34,550 for their annual taxable income? Let's say for instance my net taxable income ranges between 31K-33K, after all deductibles and 401k contribution. Although this range is over the taxable income of 29,700, but under the taxable income including the standard deduction. Is this the right concept? Still learning here.

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