Friday, January 28, 2011

FEDERAL Tax Schedule on Earnings

Marginal Tax Rate[4]
Single
Married Filing Jointly or Qualified Widow(er)
Married Filing Separately
Head of Household
10%
$0 – $8,375
$0 – $16,750
$0 – $8,375
$0 – $11,950
15%
$8,376 – $34,000
$16,751 – $68,000
$8,376 – $34,000
$11,951 – $45,550
25%
$34,001 – $82,400
$68,001 – $137,300
$34,001 – $68,650
$45,551 – $117,650
28%
$82,401 – $171,850
$137,301 – $209,250
$68,651 – $104,625
$117,651 – $190,550
33%
$171,851 – $373,650
$209,251 – $373,650
$104,626 – $186,825
$190,551 - $373,650
35%
$373,651+
$373,651+
$186,826+
$373,651+



(2010 figures)

I have provided the above chart for you to plug in your personal income numbers.  The following is an example of how making even 1.00 more can take a large bite out of your hard earned income.


34000.00 is taxed (federal only) at 15%.  This comes to 5100.00 in federal taxes.  This leaves 2800.00 in remaining income.  If a family makes 34001.00 the rate jumps to 25%.  That's a 10% increase in taxes for making 1.00 or more.  The tax burden then jumps to 8500.25 for that 1.00 increase.  The remaining income is 25501.00.  There is 3399.00 less income because of the dollar increase in pay.

Add to these numbers state and county tax, sales tax, medicare tax, SS tax and the disposable income can be pitiful.

This is something to think about at a time the country is looking at numbers.  It may be comforting to say you make over 34000.00, but it's not you laughing all the way to the bank.

1 comment:

  1. This comment has been removed by a blog administrator.

    ReplyDelete