Here goes nothing...
Hourly income = $16.15
Weekly hours = 37.5
Weeks annually = 52
Annual income = (hourly income)*(weekly hours)*(weeks annually)
= (16.15)*(37.5)*(52)
= $31,492.5
Filing as single, and according to this IRS page,
http://www.irs.gov/formspubs/article/0,,id=150856,00.html
I'm in the $30,650 - $74,200 bracket, which means that I pay $4,220.00 plus 25% of the amount over $30,650.
So I'll owe the following in federal income taxes:
4220 + (annual income - 30650)*(.25)
= 4220 + (31492.5 - 30650)*(.25)
= $4,430.625
Now, for Medicare, at 1.45% (is this income bracket dependent?) = (annual income)*(0.0145)
= (31492.5)*(0.0145)
= $456.64
Social security, at 6.2% = (annual income)*(0.062)
= (31492.5)*(0.062)
= $1,952.535
State income taxes for CT:
http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=308248
http://www.ct.gov/drs/lib/drs/forms/2006forms/income/ct-1040es.pdf
Um... *does twenty calculations and shakes the magic eight ball...*
$341.156??
Yeah, I won't be counting on that figure too much. I had to skip a few steps that I didn't understand, hence the lack of documentation on here. That was way too complicated.
Total taxes = (federal income tax) + (medicaid) + (social security) + (CT income tax)
= 4,430.625 + 456.64 + 1,952.535 + 341.156
= $7,180.956
Take-home income = (annual income) - (total taxes)
= 31,492.5 - 7,180.956
= $24,311.544
Erm, yeah. I'll be so impressed if that figure is anywhere close to accurate.
D'oh, I think I have a headache now. Not to mention fully traumatized. But I finished item 1 in my to-do list.
Income tax calculation
August 8th, 2006 at 05:29 am
August 9th, 2006 at 04:47 am 1155095246
It didn't look like you took the standard deduction, which if applied will take you below 30K. In addition, your next post tells me that you've budgeted $150/month to retirement. If this is for a 401K or a 403B or even an IRA, this money is taken pre-tax, so your taxable income should drop (150)*12 =1800. If its a Roth, of course, then the money is post tax.
August 9th, 2006 at 09:06 am 1155110817
I'm practically gushing fountains from behind my ears when it comes to taxes, I'm afraid. I started trying to figure this all out all of,,, one day ago. I did this post as a learning exercise, just to see how far I can get. So I'm not in the least surprised if I did screw it up majorly. (Hey, at least I have till April to get this down!)
You're right about the retirement (which is a 403B)--I didn't take it out pre-tax for this set of calculations. That's because I hadn't decided how much I wanted to take out (next post notwithstanding, I'm still not quite sure). Once I sign up for retirement, I'll obviously have to revise the calculations accordingly.
I'm not quite sure I understand what you mean by "taxable income" or "standard deduction" (unless you're referring to the money earmarked for retirement?). Or do you mean something like exemptions? Because that was part of the CT income tax calculations, but I'm not sure if federal income taxes have something similar.
BTW, I feel kind of bad for being so ignorant and asking all these dumb questions. *embarrassed* I'm already more than grateful that you've taken the time to point out that something might be amiss--thank you so much for doing that. Please don't feel like you need to respond to my questions and hold my hand--although I'll certainly accept answers or (links to resources) if you're inclined to give them. But I know I really should be hitting Google a lot harder than I have been.
regards,
~mimi
August 10th, 2006 at 04:01 am 1155178881
Taxable income is a bit different than total income, which is what I think you've calculated. Standard deduction is the deduction that you can take if you don't itemize. (Boy that sounds convoluted!!!) Its $5000 if you are single, not blind and not older than 65. And its different than the personal exemption at $3200, which if you file 1040EZ, you can combine together to take $8200 off of your total income. So, so far your taxable income is $31,000 - $8,200 = $22,800...and that's without the 403B.
You might ask around to see if someone has last year's copy of Turbo Tax for you to plug in your numbers, just to get a ballpark figure. And as always, the IRS website is a great resource, even for fraidy cats...
http://www.irs.gov/publications/p501/ar02.html#d0e5773
August 12th, 2006 at 08:17 am 1155367038
I'll have to look into the various conditions for these deductions and exemptions to make sure I qualify, and discuss the benefits and drawbacks with anything that might conflict with my parents' taxes, but this has been very enlightening. I've been operating under the assumption that I'll probably be caught by some stealth taxes that I wasn't expecting, but it's great to have some positive news.
~mimi
August 12th, 2006 at 11:48 pm 1155422915
This is your income for the coming year, right? In 2006, the standard deduction for a single person increases to 5150 and the personal exemption increases to 3300, for a total of 8450 that you subtract from your total wages, leaving you 23043 taxable income and federal tax of about 3089 (using the 2005 tables, 2006 aren't available yet.
if you are ELIGIBLE to be clained as a dependent on your parents taxes, you cannot receive the personal exemption (they'll claim it for you), and your standard deduction may be limited. As a full time student under the age of 24, you might be eligible to be your parents' dependent if they provided most of your support (rent, food, paid for your education, medical care, transportation, etc). If you are ACTULLY claimed as a dependent, you cannot take the eduction credits or deduct for your education expeneses and you cannot use the student loa.n interest deduction (since your parents can).
If you are not a dependent, then be sure to look at the education tax credit, and if your income is still in the same range once you are over 25, you might also be eligible for the Earned Income Tax Credit (EITC).
August 13th, 2006 at 01:39 am 1155429576
Also if you are claimed as a dependent, that can sometimes change the status of any scholarship or grant you receive in graduate school--more than just the Feds would be interested.
I'd still look, but as a single, childless person the income it takes to be eligible for any EITC money is frighteningly low...like on the order of 11K.
August 14th, 2006 at 07:14 am 1155536067
I started my job in mid-June. Technically, I was making a slightly lower salary until the end of July, but I didn't bother to take that into account here. So actually, for 2006, I'm only working for half the year.
I... should probably have noted that earlier, heh. Oops.
All of my education expenses (with the exception of textbooks and now, student loan payments) came from my father. Am I still good for education credits? They sound interesting, nonetheless--I'll have to look them up. If nothing else, they'll be relevant if I decide to go to grad school a few years down the line. I'm no longer a student at the moment.
~mimi