Category | Monthly | Comments | Annual |
Salary/Wages for person #1 | $6,750 | $81,000 | |
Salary/Wages for person #2 | $275 | $3,300 | |
401(k) / 403(b) / TSP / etc. | $1,500 | Room to increase? | $18,000 |
Income subject to IRS tax | $5,525 | $66,300 | |
Federal Total Income | $5,525 | $66,300 | |
Federal tax | $361 | 2015 rates, MFJ, stand. ded., 3 exempt. | $4,332 |
State/City tax | $161 | Guess, using 4.63% * Fed. Taxable | $1,931 |
Soc. Sec. | $436 | Assumes 2 earners paying | $5,227 |
Medicare | $102 | $1,222 | |
Total income taxes | $1,059 | $12,712 | |
Income before other expenses | $4,466 | $53,588 |
Filing Status | 2 | 1=S, 2=MFJ | |
# Exempt. | 2 | ||
# Children <17 | 3 | ||
# of earners | 2 | ||
Total Income | $66,300 | ||
Std. Deduct. | $12,600 | ||
Act. Deduct. | $12,600 | ||
Exemption | $12,000 | ||
AGI | $66,300 | ||
MAGI | $66,300 | ||
Taxable | $41,700 | ||
Tax | $5,333 | ||
Savers' credit | $0 | ||
Tax after n-r credit | $5,333 | ||
Child Tax Cred. | $1,000 | ||
EIC | $0 | ||
Net Tax | $4,333 | ||
Monthly | $361 | ||
State tax | $1,931 | 4.63% |
MDM, I made some updates to my original post. My TSP contributions amount to $1544 a month (21%) and I don't pay state income tax (I'm a Texas resident).Ok, we can ignore the state tax then - it doesn't affect the federal anyway, because you aren't itemizing deductions.
A couple common things missing from your analysis are mortgage interest, dividend income, and interest income so you may want to include that unless they are close to nothing.
you don't ever want to owe more than $1000 as there are steep penalties and interest.That's not necessarily true. See http://www.irs.gov/publications/p17/ch04.html#en_US_2014_publink100032429 for the "Generally, you will not have to pay a penalty for 2014 if..." language.
As far as I can tell I fed the IRS and TurboTax the same information. Here are the summaries:
Turbotax:
Total Income $73,300
Regular Taxes $6,386
Tax Credits $1,000
IRS:
Based on the information you previously entered, your anticipated income tax for 2015 is $5,336.
Job 1 (which has a projected salary of $88,000): 4 allowances.
Job 2 (which has a projected salary of $3,300): 0 allowances.
Category | Monthly | Comments | Annual |
Salary/Wages for person #1 | $6,750 | $81,000 | |
Salary/Wages for person #2 | $275 | $3,300 | |
401(k) / 403(b) / TSP / etc. | $1,500 | Room to increase? | $18,000 |
Income subject to IRS tax | $5,525 | $66,300 | |
Other ordinary income | $583 | $7,000 | |
Federal Total Income | $6,108 | $73,300 | |
Federal tax | $449 | 2015 rates, MFJ, stand. ded., 3 exempt. | $5,382 |
State/City tax | $0 | $0 | |
Soc. Sec. | $436 | Assumes 2 earners paying | $5,227 |
Medicare | $102 | $1,222 |
Filing Status | 2 | 1=S, 2=MFJ | |
# Exempt. | 2 | ||
# Children <17 | 3 | ||
# of earners | 2 | ||
Total Income | $73,300 | ||
Std. Deduct. | $12,600 | ||
Act. Deduct. | $12,600 | ||
Exemption | $12,000 | ||
AGI | $73,300 | ||
MAGI | $73,300 | ||
Taxable | $48,700 | ||
Tax | $6,383 | ||
Savers' credit | $0 | ||
Tax after n-r credit | $6,383 | ||
Child Tax Cred. | $1,000 | ||
EIC | $0 | ||
Net Tax | $5,383 |