AloneWithFood
AloneWithFood t1_iuh13mz wrote
Reply to comment by agm_93 in Can I use past expenses as a tax deduction? by agm_93
10% for individual income of $9,875 or less ($19,750 if married filing jointly) 12% for individual income over $9,875 ($19,750 if married filing jointly) 24% for individual income over $40,125 ($80,250 if married filing jointly) 32% for individual income over $85,525 ($171,050 if married filing jointly)
What this means is for the first $9,875 earned you pay 10% tax. Then for income earned $9,876-$40,125 you pay 12%. And so on and so on.
So if you earned $85,525 you won't pay exactly 32% taxes because for the first 9.8k you paid 10% and for the rest up to 40k you paid 24% and so on.
AloneWithFood t1_iugx8al wrote
Reply to comment by agm_93 in Can I use past expenses as a tax deduction? by agm_93
You can look at it that way. But you need to find out what percentage of taxes you are paying to get an accurate formula
AloneWithFood t1_iugwj7h wrote
Reply to Can I use past expenses as a tax deduction? by agm_93
Your tax write-off is not a tax credit. If I buy a $1,000 item and it's tax deductible. You won't pay taxed on that $1,000.
So if you make 100k you'd only pay taxes on 99k. Let's say you pay 30% taxes, 30% of 100k is 30k and 30% of 99k would be 29.7k. you'd save $300 in taxes but still spent 1k on the item.
AloneWithFood t1_iug0zrj wrote
Reply to Yea man look at you by sonicyeayea
Just give me a happy family and upper middle class.
AloneWithFood t1_iuic33y wrote
Reply to comment by I__Know__Stuff in Can I use past expenses as a tax deduction? by agm_93
If op earned 87k and deducted 1k then his income would be 86k. He would not pay the 32% taxes on that 1k deduction. Correct?