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Income tax bracket maneuvering

September 18th, 2006 at 11:10 pm

Goal: bump myself down to the lowest federal income tax bracket through my 403(b) deduction.

Gross income this year from current job: $17,617.25.

Add in work-study and round up a bit: $17,850.

Exemptions:
- $5150 (standard single)
- $3300 (personal, non-itemized)

Taxable income after exemptions: $9400.

Total 403(b) deductions: $1865.33.

Taxable income after 403(b): $7534.67.

Lowest federal income tax bracket: $7550 or below.

Wow, that's really kind of cutting it close. Especially since my math kind of gets fuzzy at certain points.

Maybe I should up my deduction.

As for income taxes, I've already had $1407.97 withheld from my paycheck this year to date. 10% of $7550 is $755.

Yes, definitely no more taxes this year.

1 Responses to “Income tax bracket maneuvering”

  1. baselle Says:

    I like it when I cut it close. Usually I cut it so that I pay about a $100 or so in taxes.

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