Author Topic: Tax Bracket Question  (Read 583 times)

coldsteel333

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Tax Bracket Question
« on: February 22, 2019, 12:33:37 PM »
so i have 3 years to pay off debt, and have some child care money free up. But i have a tax bracket question.
Tell me if this is correct please. I'm married filling jointly im currently in the 22% bracket.
80,000 income - 24,000 deduction standard = 56,000
56,000- 18k 401k for me and 18K  401k for my wife. = 36000 leaves 22,000
22000 - 3000 of hsa contributions = 19000 which leaves me in the 12% bracket so i only pay 12% tax on 19,000 instead on 22% on 19,000

Hope i explained this well enough because that why im asking for guidance as im not sure im doing this correct.

RWD

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Re: Tax Bracket Question
« Reply #1 on: February 22, 2019, 12:50:30 PM »
Under $19,050 is in the 10% bracket for married filing joint for your 2018 taxes. Otherwise I think your calculations are correct.

Keep in mind that your top tax bracket only applies to your marginal income, not your entire taxable income. So if your taxable income goes up to, say, $25k then the first $19,050 will be taxed at 10% and the next $5,950 will be taxed at 12%.

coldsteel333

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Re: Tax Bracket Question
« Reply #2 on: February 22, 2019, 01:02:15 PM »
Under $19,050 is in the 10% bracket for married filing joint for your 2018 taxes. Otherwise I think your calculations are correct.

Keep in mind that your top tax bracket only applies to your marginal income, not your entire taxable income. So if your taxable income goes up to, say, $25k then the first $19,050 will be taxed at 10% and the next $5,950 will be taxed at 12%.

Thanks I did not realize that so no reason to squeeze a few thousand more out of things if it puts you too tight because the first 19 thousand is still only 12 percent. Also Im referring to this current year of 2019 too.

RWD

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Re: Tax Bracket Question
« Reply #3 on: February 22, 2019, 01:19:58 PM »
Under $19,050 is in the 10% bracket for married filing joint for your 2018 taxes. Otherwise I think your calculations are correct.

Keep in mind that your top tax bracket only applies to your marginal income, not your entire taxable income. So if your taxable income goes up to, say, $25k then the first $19,050 will be taxed at 10% and the next $5,950 will be taxed at 12%.

Thanks I did not realize that so no reason to squeeze a few thousand more out of things if it puts you too tight because the first 19 thousand is still only 12 percent. Also Im referring to this current year of 2019 too.
For 2019 the first $19,400 will always be 10%.

coldsteel333

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Re: Tax Bracket Question
« Reply #4 on: February 22, 2019, 01:25:52 PM »
so over 19 is 12 or 22?

RWD

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Re: Tax Bracket Question
« Reply #5 on: February 22, 2019, 01:32:50 PM »
For 2019, married filing joint, taxable income between $19,400 and $78,950 is 12%.
https://taxfoundation.org/2019-tax-brackets/