Bordering a tax bracket, need some info.

[HurryUpAndBuy]

I make right under 36,000 a year, I've been thinking of getting a second job and doing so it will jump me into the 44,000 range. I've read the cut off iunder is 37,000 in the 15% and over I'm in the 25%, I'm not too sure on that number.

I've tried to research online but get confused honestly.

What do u guys think?

 

[hashmander]

you're not understanding it right. all $38k doesn't get taxed at 25%. that would be a stupid policy that would have people forgoing raises (and i've read online where some people have been taking that kind of shytty advice from co-workers).

if you make 45k (and this works for every salary) and are a single filer:

your first $9,275 is taxed at 10% then the income between $9,275 to $37,650 is taxed at 15% and then the income between $37,650 to $45k is taxed at 25%.

 

[Dusty Bake Activate]

I make right under 36,000 a year, I've been thinking of getting a second job and doing so it will jump me into the 44,000 range. I've read the cut off iunder is 37,000 in the 15% and over I'm in the 25%, I'm not too sure on that number.

I've tried to research online but get confused honestly.

What do u guys think?

That's not how it works. Only the income above the bracket threshold gets taxed at that bracket's rate.

 

[HurryUpAndBuy]

That's not how it works. Only the income above the bracket threshold gets taxed at that bracket's rate.

I don't get it

 

[the cac mamba]

I make right under 36,000 a year, I've been thinking of getting a second job and doing so it will jump me into the 44,000 range. I've read the cut off iunder is 37,000 in the 15% and over I'm in the 25%, I'm not too sure on that number.

I've tried to research online but get confused honestly.

What do u guys think?

what dude said above

to put it simply, only the money you make over 36000 or whatever, gets taxed at that higher rate. so dont skip the second job

 

[Dusty Bake Activate]

That's not how it works. Only the income above the bracket threshold gets taxed at that bracket's rate.

If $37,000 is the bracket that's taxed at 25% and you make over $37,000, only the income you make in excess of $37,000 is taxed at 25%.

 

[Dusty Bake Activate]

Delete

 

[ⒶⓁⒾⒶⓈ]

I don't get it

He is saying you will pay the same amount of tax you would have paid up to the threshold..i think its actually $37,500 then on the difference you make from your second job 44-37.5 = 6.5

you will pay the higher 25% rate on ONLY $6500 which will be around $1700 in extra taxes

but you can still claim deductions too..

 

[HurryUpAndBuy]

what dude said above

to put it simply, only the money you make over 36000 or whatever, gets taxed at that higher rate. so dont skip the second job

Oh... So if I made 46,000 only 10,000 gets taxed at the higher rate which is 25% and everything else will be 15%?

What about owing taxes when you file at the end of the year, how will that be affected?

 

[HurryUpAndBuy]

He is saying you will pay the same amount of tax you would have paid up to the threshold..i think its actually $37,500 then on the difference you make from your second job 44-37.5 = 6.5

you will pay the higher 25% rate on ONLY $6500 which will be around $1700 in extra taxes

but you can still claim deductions too..

explain.... im trying to save for a house and my goal is to save 25k a year, i live with my mom and i dont pay for shyt and have no bills but a 15k student loan... i went check out houses and ive seen some nice homes and i want one

 

[ⒶⓁⒾⒶⓈ]

explain.... im trying to save for a house and my goal is to save 25k a year, i live with my mom and i dont pay for shyt and have no bills but a 15k student loan... i went check out houses and ive seen some nice homes and i want one

I admire your goal for saving..you should look into savings bonds or treasury bonds if its a long term plan to keep inflation from eating away the savings
Your student loan interest right there is deductible,there are others too like the job hunting expenses ,tools equipment and uniforms,Union dues,get some dental work done,medical copays...just go to a site like turbotax and look at the lists see what applies to you.

 

[HurryUpAndBuy]

I admire your goal for saving..you should look into savings bonds or treasury bonds if its a long term plan to keep inflation from eating away the savings
Your student loan interest right there is deductible,there are others too like the job hunting expenses ,tools equipment and uniforms,Union dues,get some dental work done,medical copays...just go to a site like turbotax and look at the lists see what applies to you.

I usually just go to HRblock and I just sign away... Oh so if I find things that are on the list and if I bought them or got dental work done I must keep the receipt and show them the proof?.. I can't just tell them?

 

[HurryUpAndBuy]

I admire your goal for saving..you should look into savings bonds or treasury bonds if its a long term plan to keep inflation from eating away the savings
Your student loan interest right there is deductible,there are others too like the job hunting expenses ,tools equipment and uniforms,Union dues,get some dental work done,medical copays...just go to a site like turbotax and look at the lists see what applies to you.

I usually just go to HRblock and I just sign away... Oh so if I find things that are on the list and if I bought them or got dental work done I must keep the receipt and show them the proof?.. I can't just tell them?

 

[ⒶⓁⒾⒶⓈ]

I usually just go to HRblock and I just sign away... Oh so if I find things that are on the list and if I bought them or got dental work done I must keep the receipt and show them the proof?.. I can't just tell them?

Yeah you gotta have receipts or statements..i usually have a card that i use for such expenses then i can view print the list at the end of the year..and i can sort payments made to each group .drs ,dentist,loan payments and so on...thats usually good enough

 

[HurryUpAndBuy]

Yeah you gotta have receipts or statements..i usually have a card that i use for such expenses then i can view print the list at the end of the year..and i can sort payments made to each group .drs ,dentist,loan payments and so on...thats usually good enough

what if i pay most things like student loans directly from my account and never see any receipts, can i call the student loaner and request how much i paid the whole year in paper form?