What are tax brackets

Posted by on Jun 29, 2012 in Pay Check Stubs, Paycheck Taxes Explained | Comments Off on What are tax brackets

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Tax brackets

  • If you make < $20,000 Your tax would be 5%
  • If you make > $20,001 and < less than $60,000 Your tax would be 7%
  • If you make > %60,000 you then would be taxed at 9%

Take, for example, two employees. One comes in an extra hour on Saturday to do some work. They get paid 10$ per hour, so one makes $59,995 and the other makes $60,005 in that year. They are only 10$ apart from each other, but, in a different Tax Brackets.

First employee will take home 59,995 – (59,995 x .07) = $55,795

Second employee will take home 60,005 – (60,005 x .09) = $54,604

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