[OT] Tax Tiers

[Jeff Schroeder]

Daniel asked:

> Does anyone know what the tax bracket tiers are?  Is it broken out by
> how much your earn or is it a combination of things (e.g. school
> loans, mortgage, charitable contributions)?

Yes.

How much you earn is obviously the biggest factor, but that income is 
adjusted by a number of things.  Interest earned on bank and savings 
accounts, profits from the sale of stock, gambling winnings (heh), and 
so forth are all added to your W-2 income.  Then you deduct things like 
mortgage interest, charitable contributions, property taxes, IRA 
contributions, health care expenses, business expenses, etc.

The resulting number is your taxable income: the all-important line 43 
on your 1040.  State and federal taxes are computed based on that 
number.

HTH,
Jeff
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: application/pgp-signature
Size: 189 bytes
Desc: not available
Url : http://plug.org/pipermail/plug/attachments/20070903/4ebfecac/attachment.bin