Tax question

[HorninDallas]

just trying to estimate my taxes:

if I make between $29,050 and $70,350, I would owe $4,000 + 25% over 29,050 minus standard deduction of $4,850, right?

 

[Agent007]

sounds about right. I had a tax class in the spring and i thought the standard deduction was lower (around $3950), but I could be wrong.

 

[BA93]

tax web site
The Link

 

[007 373 5963]

dumb question:

if i look at my pay stub for taxes paid this year, what number do i use? my ytd federal only? i don't include my fica do i?

 

[thefan]

yes, just the federal. fica doesn't matter. and y'all are leaving off the personal exemption which is $3100 i believe. subtract that from your income as well. also, the standard deduction comes off of income, not taxes.

income-standard deduction-personal exemption=taxable income; then figure taxes

 

[Agent007]

Thefan is right. Credits come off of taxes, deductions come off of income.

The personal expemption is valuable too...

 

[HorninDallas]

thanks for the help guys, looks like I'll still get a return, just won't be breaking the bank with it.

 

[TennesseeHorn]

In reply to:

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[HorninDallas]

tenn--not much I can do to get it around $100 (if I upped my withholdings I would owe a lot more than $100, I think), plus this was my first year on this job and first year with a nice bonus, wasn't sure how everything was going to work out. plus they give us more pre-tax benefits than my old job.