Have a Tax Question? Ask a Tax Expert
There is no any special tax credit for being paid off...
However as your income will likely be less than if you were working - your tax liability will be less.
All credits and deductions that you normally use - still may be used.
If you receive unemployment benefits - please be aware - that is your taxable income - and you will receive a reporting form 1099-G for that income.
If you need help to estimate your tax liability - please provide your total annual gross income.
gross - $90,000
401 K - $15,000
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what will be my liability for Fed and State (GA) taxes assuming I take only standard deduction.
Your federal tax liability:
Adjusted Gross Income (AGI) - $75,000
taxable income $75,000 - $5450(standard deduction) - $3500(personal exemption) = $66,050
taxes - $12,856 (minus whatever were withheld from your paycheck)
GA tax liability:
taxable income $75,000 - $5000(standard deduction - 2007) = $70,000
taxes - ~$4000 (minus whatever were withheld from your paycheck)