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Tax Bracket Questions
What is a Tax Bracket?
Bracket is different groups that are determined at which
change in a
system. There are cutoff values for
; the taxable income will be taxed at a higher rate past a certain point. If a person’s an annual income goes past the cutoff point, that person is taxed due to the next tax bracket.
According to tax brackets would an individual need to change their W2 form if there are individuals living with them that do not work, and they are considered the head of household? Would this drop the individual tax bracket percentage?
If at least one of the individuals is a qualifying person for “Head of Household”, then one of the people could use that status.
Only certain types of relatives can be qualifying persons for Head of Household as follows:
Child, step child, adopted child, foster child, brother or sister, or a descendant of one of these whom you can claim as a dependent under the qualifying children
Child, step child, adopted child, foster child, brother or sister, or a descendant of one of these whom you would be able to claim as a dependent under the qualifying children rules but choose not to claim as a dependent because you released the dependent's
to the noncustodial parent;
Mother or father who can be claimed as a dependent under the qualifying relative rules;
Brother, sister, grandparent, niece, or nephew whom you can claim as a dependent under the qualifying relative rules.
If a person is in the 36% tax bracket; does that mean that the entire income is taxed at 36% or is it a graduated system and only that part above a certain level is taxed at 36% ?
That will be the only part that is above a certain level is taxed at 36%; if the person’s taxable income is decreased by a dollar then the tax saving will be only be $.36. Although, if the person’s income is gained by one dollar then the tax liability will be $.36; Tax brackets apply to taxable income. The tax brackets can vary depending on the way a person files the taxes.
What tax bracket would a couple be in if they are jointly filing with a $167,000 income in California? What percentages of the earnings are supposed to be paid for the State and Federal levels?
A person’s tax bracket depends on the tax income; it has nothing to do with a person’s total income that is earned. The person will have to factor in the adjustments,
and exemptions before the person will know what the tax bracket. The couple may be in the highest bracket for CA, 9.3%.
Is there a 50% tax bracket for individuals earning over 1 million dollars?
There is not a specific tax bracket for that type of income. No there is no currently such bracket for
. The highest tax bracket is 35%. Although, there is something called the
on estate that is worth over $2,000,000. The highest tax bracket on it is 47%.
Hard working people are filing for income taxes and want to know what tax bracket that they fall in. Often individuals and couples have questions like what is the
Bracket, what is my tax bracket, and questions like what is the retirement tax bracket. Experts can assist with questions that involve income taxes and tax bracket questions that people may have. It is important to ask questions about this topic to give a better understanding.
Recent Tax Bracket Questions
I just realized my wife has to submit quarterly estimated taxes,
I just realized my wife has to submit quarterly estimated taxes, she hasn't submitted anything yet due to SS8 issue. She was an employee and paid as per W2 from 01/01/14 to 03/31/14. She converted to an IC starting 04/01/14 to present day. She is a sole proprietorship LLC. On the 2014 Estimated Tax Worksheet, line 1, is the adjusted gross income the total for the year which includes her wages as an employee 01/01 - 03/31 and her SE income starting 04/01, or is the gross income ONLY for the period as a IC starting 04/01 because employee taxes for 01/01 - 03/0 were already withheld by her employer for those wages. Would the Adjusted gross income include my earnings as well, obviously this will put us into the 25% tax bracket I believe. We will be filing as Married Filing Jointly in 2015.
As stated, my wife was forced to form a LLC for banking purposes
As stated, my wife was forced to form a LLC for banking purposes by her employer. Her current employer took it upon herself to classify her as an IC without filing a SS8. My wife fails most of the 20 question test as an IC, the relationship is still employer/employee. I will be submitting as SS8 at the last possible moment so as not ruffle the relationship. My wife has not paid any tax on the checks that were made to her LLC. The questions are; if she is classified as a Employee still, will she be hit with a fine and penalties, what will happen to the employer when the IRS informs her that it is still an employer/employee relationship, when will her taxes become due and payable in full without incurring fines, if her tax bracket is 75K, what is the tax she has to remit as Married filing jointly? Thanks.
I have received a settlement offer from my last employer (of
I have received a settlement offer from my last employer (of 8 years) for overtime wages because I believed they misclassified me as exempt employee when I should have been non-exempt. I had the title of Manager of a thrift store but never could hire or fire any employees, never had two fulltime paid employees working for me and could not make any important business decisions. I spent 90% of my time doing non-managerial work. I got a lawyer on contingency, he sent them a letter, calculating 20 hours overtime per week, with penalties, interest and lawyer's fees he asked for $$221,041.00.
They have sent a settlement offer for $50,000. They are denying any wrongdoing, and state they believe i was not misclassified but they are offering this payment for a release of all claims. I need your help in calculating what taxes I would have to pay on this. It is broken down as follows:
$15,000. in a check to me for "Compromise Wage Payment" less applicable federal and California payroll tax deductions.
$18,300. in a check to my lawyer's client trust account "for all claims being released, including any penalties and or interest possibly due for all claims being released" and
$16,700. to my lawyer's client trust account for attorney's fees and costs.
It also has a clause for "Indemnity" which in summary indemnifies and holds the employer from any claim by California Franchise Tax Board or IRS for my income and other taxes payable as a result of this consideration. That I have to pay all sums due to either agency as income tax or my portion of social security taxes, plus any penalties or interest if I fail to timely pay tax. Then it says that the second payment listed above is in accordance with all laws as a payment for execution of a release and not wage payments. But if the CFTB or the IRS determine differently I will be obligated to pay the taxes.
Can you tell me approximately how much taxes I will have to pay, and do I have to pay taxes on the attorneys fees as wages also? My salary until May 2014 was $3100. per month gross, with 2 exemptions (California)and my unemployment from May to likely end of year is $1364.00 per month
I have been unemployed since May 2014, receiving unemployment compensation only, and am head of household with 1 dependent. Your answers will help me decide if I should accept this offer. It also states this must be kept totally confidential or I have to pay $5000. to them in damages, and basically that they are released from any and all possible claims against them and anyone associated with them for the rest of my life.
Thank you for your timely response on these tax questions.
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