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Maybe I'm just being lazy, but I can't figure out how you find out how much tax you will pay for a certain income.

I'm trying to show my BF a budget for our future based on our projected incomes (we're talking about marriage, and I refuse until we are on the same page financially). I thought it would be smart to include a line on our monthly budget for taxes we'll have to pay in April each year. But to figure what to save, I need to know ROUGHLY what we'll owe.

I have the 2002 tax tables, but I don't understand how you figure it. Where it says, Married filing jointly "if the amount on Form 1040, line 41 is: Over 171,950 but not over 307,050, Enter on Form 1040, Line 42 41,995.50 + 35% of the amount over 171,950."

I'm estimating that our combined monthly income, by the year 2008, will be roughly $270,000. The difference between 171,950 and 270,000 is 98,050. 35% of that is 34,317.50.

So, do we just add those two together: $41,995.50 + $34,317.50 and that's what we owe??? That is a whole lotta tax, and I'm beginning to see why they say Democrats become Republican when they get rich.

That would mean, in order to prepare to pay our taxes in April, we'd need to be putting back approx $6,400 a month. But won't some part of this be taken out of our paychecks monthly anyway? So, if they take per month, a total of $3,000, then we really will only need to be putting away $3,400 a month. Still...

You guys have to bear with me... I come from people who just recently started making enough money to pay taxes instead of getting a refund.

Kids help soften the blow, right? You get deductions for kids? And a mortgage? Stuff like that?

Okay, I should go study for my law school finals, or I'm not going to have to worry about this stuff ...

Anyway, if I show it to BF, he'll say, "this is too much work, and we'll probably die tomorrow anyway."

Anyone have any "Taxes for Dummies" book suggestions that would help put some of this in lay terms? (No rush - my taxes are done for this year, already stashed the refund.)

:P
Deb
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