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Guru_Guy, Lawyer (JD)
Category: Tax
Satisfied Customers: 2418
Experience:  I am a lawyer who understands tax law and finance.
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how much taxes on $23000.00

Customer Question

already paid taxes on $32000.00 the $23,0000.00 income is from sales.
Submitted: 10 years ago.
Category: Tax
Expert:  Guru_Guy replied 10 years ago.

The exact numbers depend greatly on your filing tatus and other income. If you earned $32,000 per year, file as "single" and take the standard deduction, you would owe about $3100 in federal income taxes.

If you earned another $23,000, you would pay about $8000, or about $4900 more, since this additional amount pushes you into the 25% tax bracket.

If this was earned income from a personal sales business, you would also owe SS and medicare taxes of about $3500, meaning your total amountof additional taxes would be about $7400.

However, if the money came from the sale of long term assets, you would only owe less than half that, $3450 since long term capital gains are taxed at a maximum of 15%.

I hope this helps!

Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.
Customer: replied 10 years ago.
Maybe I wasn't clear enough I had three jobs in 2006 and my employer on the first two jobs took out taxes on $32,000.00. My third job   was selling real estate as an Independent Contractor and htere were no taxes taken out on $23,000.00(although $5000.00 of the $23000.00 was for relocation). PLEASE RESPOND AGAIN.
Expert:  Guru_Guy replied 10 years ago.
If the money was earned as an independent contractor, and you are filing a single person with ony a standard deduction, then my estimate of about $7400 in additional taxes for federal income, social security, and medicare would apply.

You may be able to offset some of this income as an independent contractor. For example, if you used your car to drive around real estate clients, you could deduct auto expenses based on a per mile expense or a pro rata portion of your total car expenses. You may also have deductions if you maintain a home office, or other costs associated with earning these profits.

But if the $23,000 was pure profit, then you are looking at around a $7400 tax bite. If, with your other jobs, more was withheld than was necessary to cover that income, you may be able to offset some of your additional taxes with that money paid.

In other words, your total tax bill would be around $11,500 minus whatever you paid in withholding at the two jobs that withheld taxes.
Customer: replied 10 years ago.
It was draw against commission on site real estate sales for a developer . What about the $5000 relocation of the 23k and Florida allows head of the household homestead exemption.
Expert:  Guru_Guy replied 10 years ago.
Reimbursements for moving expenses can only be deducted in certain circumstances and for certain costs actually incurred. This IRS publication explains the details:

The Florida homestead exemption applies to a reduction of your property taxes, not income taxes.
Customer: replied 10 years ago.
Customer: replied 10 years ago.
Please immediately have this company issue me a credit as tax questions if answered by an an attorney as opposed to a CPA absolutely need to answered by a licensed attorney in the State that the question was rendered as you need to be an active member of The Florida Bar to answer my questions. Turn this matter over to a supervisor if needed and I will expect a response ASAP. Thank you for your help but my questions included Homestead questions and I am certain of this formailty.
Customer: replied 10 years ago.
Reply to Guru_Guy's Post: AWAITING CREDIT PLEASE
Customer: replied 10 years ago.
I have been waiting for an answer and want a credit per same.
Expert:  Guru_Guy replied 10 years ago.
I'm sorry you feel that way. Since you have not accepted any of my answers, you should not be charged. I wish you would have mentioned you felt this way before you had me waste my time answering multiple follow up questions.
Customer: replied 10 years ago.
Reply to Guru_Guy's Post: I need to know if the attorney that answered all of my questions is in fact an active member of the Florida Bar?
Expert:  Guru_Guy replied 10 years ago.
It says in my bio that I am no longer active in any bar. I was never a member of the Florida Bar. This forum is not designed to provide legal services. It is meant to provide more general informational answers to questions.

As I said in my original answer, for legal advice, you should speak with an attorney in your State. You should not use this forum. For the detailed analysis of your financial situation that you seem to be seeking, you should expect to pay legal fees of at least $300-$500.