How Do You Calculate Federal Income Tax?
There are several ways of calculating your federal income tax but I use Quick Books 2009 to help calculate my income tax for payroll. I have found several resources online to calculate my federal income tax withholding rates but as you will see in this article your rates will fall between 10%-35% depending on your gross income. To calculate your federal income tax you must know where taxable income falls, such as if it is between zero (0) and $8,350.00 your tax bracket is 10% and you can calculated your federal income tax by taking $8,350.00 minus 0 times (X) .10 = $835.00 To calculate your federal tax rate use this taxable income bracket: If you make: $8,350 – $33,950 = 15% $33,950 – $82,250 = 25% $82,250 – $171,550 = 28% $171,550 – $372,950 = 33% $372,950 – and above = 35% So if you make $500,000 a year you should expect to pay 35% in federal in come taxes or $175,000.00 Married filing jointly, married filing separately, and head of household all have different rates but I have provi
