u nderstanding t axes. w hat is a t ax ? tax is a financial charge on a taxpayer by the federal and...

UNDERSTANDING TAXES

WHAT IS A TAX?

Tax is a financial charge on a taxpayer by the federal and state governments.

SO… WHAT THINGS CAN YOU BE TAXED ON?

Goods and ServicesPersonal or BusinessIncome

REMEMBER THAT THERE ARE STATE AND FEDERAL

TAXES

They are the ones in charge of collecting tax revenues for the State and Federal governments.

BUT WHY WOULD THEY TAKE OUR MONEY AWAY?!?!?!

WHAT ARE THE TAX RATES?Single Taxable Income Tax

$0 – $8,500 10% of taxable income

$8,500 – $34,500 $850 plus 15% of $8,500

$34,500 – $83,600 $4,750 plus 25% of $34,500

$83,600 – $174,400 $17,025 plus 28% of $83,600

$174,400 – $379,150 $42,449 plus 33% of $174,400

$379,150+ $110,016.50 plus 35% of $379,150

Married Taxable Income Tax$0 – $17,000 10% of taxable income$17,000 – $69,000 $1,700 plus 15% of $17,000

$69,000 – $139,350 $9,500 plus 25% of $69,000

$139,350 – $212,300 $27,087.50 plus 28% of $139,350

$212,300 – $379,150 $47,513.50 plus 33% of $212,300

$379,150+ $102,574 plus 35% of $379,150

SO… HOW MUCH DO I HAVE TO MAKE TO BE REQUIRED TO FILE TAXES?

YOU MUST FILE TAXES IF YOU EARN THE FOLLOWING AMOUNTS OF INCOME:

Self-employed, any age: $400Children and Teens classified as a dependent: $5,700Single, under 65: $9,350 Single, over 65: $10,750 Married, filing jointly, both spouses under 65: $18,700 Married, filing jointly, one spouse over 65: $19,850 Married, filing jointly, both spouses over 65: $20,900 Married, filing separately, any age: $3,650