Questions tagged [tax-brackets]

14 questions
25
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If I switch jobs to a lower tax bracket right before I retire, do I save on 401k taxes?

I'm curious about how your withdrawal tax bracket is determined for your 401k Here are the scenarios: A) Let's say I am making $100,000-$200,000 per year for my whole career with a Traditional 401k. I don't remove anything from it before age 59.5.…
user40241
17
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2 answers

Employer skipped payments, should I allow them to defer payment until Jan 2017?

Recently my employer failed to pay me for 3 consecutive pay periods. This is being corrected but they do not want to cut a check but instead provide one lump sum along with January's first payment. They assure the total amount and withholding will…
user51514
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15
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Are there in-between tax bands in the UK

Are there any in-between tax bands or would my income tax be either 0,20,40 or 45% ? If (in 17/18) I make 44999 a year my tax would be ~9000 but if I make £2 more at 45001 my tax is now ~18000 ?
10
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2 answers

Why is there a tax bracket less than $2000 wide with 35% marginal tax rate in the U.S.?

It seems as if anyone that's getting paid $398,351 – $400,000 would simply lower their salary to the $183,251 – $398,350 tax bracket and get 2% lower income taxes. Does the bracket serve any purpose, or is it simply some type of bureaucratic…
byrass
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7
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Confusion about tax bracket?

So until last year, I was least concerned about tax brackets because I was getting money back every year. However, my wife started working this year and sounds like we do owe some money to uncle SAM this year. Now, I started looking into different…
Lost
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3
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1 answer

Capital gain tax for selling house just bought?

My wife and i just bought a house but due to new circumstances we may have to sell it less than a month after buying it (we cannot keep it vacant or rent it). The house cost $160K. Say we sell it for the (extraordinary) price of $200K. From what I…
michael
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Capital Gains Taxes for Mutual Funds and Tax Bracket Implications

Assume my taxable income is within the 25% bracket, and my mutual funds have capital gains that year. Additionally, my being in the 25% bracket occurs before the capital gains are accounted for. It is my understanding that I would have to pay 15%…
BaronFiner
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1
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2 answers

Roth IRA and Tax Bracket

As I understand it, after 59.5 years, any Roth IRA withdrawals incur no tax, provided the account is at least 5 years old. Therefore, if my only income after that age were from Roth IRA withdrawals, I would pay no income tax. After that age, if I…
BaronFiner
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Can someone explain how to calculate the "The Tax Is" column of the U.S. Federal tax brackets?

I know that for U.S. Federal Personal Income Tax, the schedule is progressive, so for a single person filing for $60,000 (in 2011 for this example), the first $34,500 is taxed at 15% and then the rest is taxed at 25%. What I don't understand is how…
Yistorian
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Can large long-term capital gains be offset by not being employed?

If I understand correctly, you pay 0% long-term capital gains tax if you are in the 10% or 15% income tax brackets (i.e. if you make $37,450 or less). If I knew I had to sell my stock that had, say, $1M of capital gains, could I simply not work…
Jer
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1
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Approaches to filling up tax brackets - which one makes the most sense?

My key question: which one of the 3 basic scenarios outlined below to fill up tax brackets makes most sense? A few (simplifying) assumptions first: We are married filing jointly, and are planning to stay in the 12% marginal tax bracket for regular…
1
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2 answers

Why doesn't anyone look at the combined federal and [Your State] tax rate, grouped by bracket?

Why doesn't anyone look at the combined federal and [Your State] tax rate, grouped by bracket? Let's say like the Federal + New York tax rates? Wouldn't this determine the incremental amount of total tax paid per additional dollar of taxable income,…
0
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2 answers

How to fill out a W-4 for a job when you're also self-employed, if your self-employed income puts you in a different tax bracket?

I've been self-employed for a while, and am now starting a second job with an employer. I'm a bit confused as to how I should complete the W-4 - I just want to make sure I'm paying the correct amount of taxes (both income tax and self-employment…
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5 answers

What current tax bracket is used for Roth 401(k)? What happens if it's incorrect?

When contributing to a Roth 401(k), you get taxed on it immediately. But we know that, in general, your company won't know your exact tax rate and brackets; it'll only have an approximation—that's why so many people get refunds (or make payments)…
user541686
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