I've used PaycheckCity's calculator (
here) against my current pay to check it's accuracy, and it's very very close. Within ~$4 of my actual paycheck. I fall within 2018's 12% tax bracket.
I am interviewing for higher paying jobs, though, and looking at what my tax liability would be at various salary ranges. I'm not noticing a jump from 12% to 22% on the calculator where I think it should happen, though. Can anyone enlighten me as to what's going on (what I'm missing)?
I'm looking between 70,000 a year and 71,000 a year, which is where I think I should see the jump based on my calculations.
I'm operating under the assumption of biweekly pay, $711.53 to 401k, and $40 to health insurance premium per paycheck. (That's $18499.78 in the 401k annually). And I'm in Iowa and do pay state taxes. Zero allowances, I'm not expecting any tax credits.
That should take my adjusted gross income, minus the 12,000 standard deduction for single, down to $38,460.22 taxable for the 70k salary, and $39,460.22 for the 71k salary.
The 22% bracket starts at $38,701.
However, according to PaycheckCity, the federal withholding for the 70k salary would be $239.49 per paycheck ($6226.74/year) and for the 71k salary would be $247.95/paycheck ($6446.70/year). There's no jump.
Furthermore, 12% of $38,460 is $4615.20 and 22% of $39,460 is $8681.20. These are the numbers I'm assuming my actual tax liability would be (assuming no other income, no additional IRA contributions or anything like that).
WHAT am I missing? 2018 federal tax brackets look like a flat tax, instead of the X% on the amount over --- that 2017 was.
