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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15312
Experience:  15years with H & R Block. Divisional leader, Instructor
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How much taxes will I pay $ 450,000 in 2015. I am

Customer Question

How much taxes will I pay for making $ 450,000 in 2015. I am married with one kid.
Submitted: 2 years ago.
Category: Tax
Expert:  Robin D. replied 2 years ago.
Hello,I estimated it as Married Filing Joint and one dependent with standard deduction.Your federal tax liability would be $118,197.50. FICA (Social Security and Medicare) $7,347.00 SS andMedicare Tax (Payroll medicare tax on $450,000)$8,325.00.You have a child who may qualify for the Child Tax Credit, but your AGI is over the federal phase-out limit of $110,000 for married individuals claiming a child tax credit. Because of this, you will only receive a phased-out child tax credit of $0 per qualifying child instead of the full credit of $1000. Your federal tax is estimated to be $118,197.50
Customer: replied 2 years ago.
Only $ 118,197.50. That seems low . I have seen $125,382 for income over 439,000 plus 39.6 % of the difference. Please clarify.
Expert:  Robin D. replied 2 years ago.
I used the standard deduction for married and on dependent. No credits no extra amounts.I then split out the FICA in case you wanted to know that too.
Customer: replied 2 years ago.
Last year, I made $365,000 and paid $ 104,000 in taxes. That is 28.8 %. Making $ 450,000 and paying $ 118,197.50 is only 26 %. I do not get it.
Expert:  Robin D. replied 2 years ago.
I rechecked my math and I was just a little low on the actual tax amount federal.Based on your income, your anticipated income tax for 2015 is $120,389.
Expert:  Robin D. replied 2 years ago.
Of course I did not take into account any 401k or medical you may have taken out pretaxed.