Is there a way to work out how much tax we would probably owe (US) it is only federal taxes...just not sure where to find it...any help would appreciate it
I have had pretty good luck with this tax refund calculator: https://turbotax.intuit.com/lp/ppc/2541?srqs=null&cid=ppc_gg_nb_stan_all_na_Calculator-CalculatorEstimateBrackets-Calculator-Exact
I tried to use the URL I gave you to estimate my taxes. The one factor that I need to account for was not available in that form and that is a tax credit for my new solar installation. I guess I have to wait until tax time.
Unless you are using credits like daycare, Healthcare Spending Account, tuition - which I think you are not- determining what you owe in taxes is easy.
this is based on married, filing jointly.
You start with your gross US income.
Subtract the standard deduction - if filing jointly, $27,200.
That is yor adjusted gross income.
You owe 10% tax on the first $22,000 or $2200.
You owe 12% on the amount between $22,001 and $89,450(if you made less than $89,450 subtract $22,000 from gross income. Otherwise use $67,450. multiply by 12%. Add that to the $2200 to determine what you owe.)
You owe 22% on the amount between $89451 and 190,750.(If you made less than $190,759, subtract $89,450 from your gross income. If you made more than $190,750, use $101,300. Multiply by 22%.Add to the amount you calculated above. That’s what you owe)
There are higher rates, but I think this will cover you.
Roth IRA contributions are made post tax, so they don’t affect what you owe in income tax - you pay the tax before you deposit. Then when you withdraw, there is no tax either on any of the withdrawal - both your contribution or any gains.
If you use a traditional IRA, you put that in pre tax. You save money in th current tax year, but when you withdraw you pay taxes on both what you contributed and on he gains.
For traditional IRA, HSA, solar tax credit you start with your gross income. Then subtract your IRA, HSA, and solar credit from that. This lowers your gross income. Then apply the tax percents to that number.
December 12th, 2023 at 02:14 am 1702347279
December 12th, 2023 at 03:50 am 1702353024
December 12th, 2023 at 02:55 pm 1702392932
December 12th, 2023 at 03:41 pm 1702395665
this is based on married, filing jointly.
You start with your gross US income.
Subtract the standard deduction - if filing jointly, $27,200.
That is yor adjusted gross income.
You owe 10% tax on the first $22,000 or $2200.
You owe 12% on the amount between $22,001 and $89,450(if you made less than $89,450 subtract $22,000 from gross income. Otherwise use $67,450. multiply by 12%. Add that to the $2200 to determine what you owe.)
You owe 22% on the amount between $89451 and 190,750.(If you made less than $190,759, subtract $89,450 from your gross income. If you made more than $190,750, use $101,300. Multiply by 22%.Add to the amount you calculated above. That’s what you owe)
There are higher rates, but I think this will cover you.
Details are here
https://taxfoundation.org/data/all/federal/2023-tax-brackets/
December 12th, 2023 at 03:59 pm 1702396769
December 12th, 2023 at 09:46 pm 1702417611
If you use a traditional IRA, you put that in pre tax. You save money in th current tax year, but when you withdraw you pay taxes on both what you contributed and on he gains.
For traditional IRA, HSA, solar tax credit you start with your gross income. Then subtract your IRA, HSA, and solar credit from that. This lowers your gross income. Then apply the tax percents to that number.
December 13th, 2023 at 12:11 am 1702426281