2022 Tax brackets

[BK911]

Below is a clip of the 2022 tax brackets.

Say I make $90k. Is $89k taxed at 22% and $1k taxed at 24%?
Or the whole enchilada taxed at 24%?

What if mommy has a part time job and her income puts us in a higher tax bracket.
Would filing separately reduce our taxes?

I will do the math both ways, but just curious what you smart people do.

[Sooner or later]

89 @ 22
1 @ 24

[Crowbob]

Yep.

[KFC911]

Filing jointly, your income (minus standard or itemized deductions) would be taxed at 22% (or less) for the first $83,550, and at 24% for the amount above that.... up to $178,150, etc.

Unless you are really rich .... then it might be much less

edited: Don't think the lower % threshold is shown in the joint table brackets above .... pretty sure there is one.

2nd edit: My dawg typed the original post .... she can't read the brackets gud with no coffee

But she got the jist of graduated brackets right

[stevej37]

Glad it isn't taxed the higher amount for the whole works.
My ss cola raise would have sunk me next tax season.

[KFC911]

Turtle losses are deductable .... get a politician's CPA to do yer taxes

[KFC911]

Nary a person has ever said "NO THANKS!" to a salary increase because it put them in a higher tax bracket...

Unless they wuz $toooopid

[masraum]

Originally Posted by BK911

Below is a clip of the 2022 tax brackets.

Say I make $90k. Is $89k taxed at 22% and $1k taxed at 24%?
Or the whole enchilada taxed at 24%?

What if mommy has a part time job and her income puts us in a higher tax bracket.
Would filing separately reduce our taxes?

I will do the math both ways, but just curious what you smart people do.

I believe what SoL said is correct as I understand it.

If you're a 2 income family I don't think filing separately is going to help, but I could be wrong. I'm pretty sure Uncle Sam is going to get his no matter how you file.

[KFC911]

^^^ Are y'all looking at the same brackets I am?

Jointly is gonna be how they file... unless I'm wrong, it's better than two filing individual returns .... usually.

But I never had to choose .... I could be wrong ...

[masraum]

Originally Posted by KC911

Nary a person has ever said "NO THANKS!" to a salary increase because it put them in a higher tax bracket...

Unless they wuz $toooopid

I've heard folks complain about getting small raises or raises that bumped them to just above a new tax bracket.. I was always baffled. Seriously baffled. And even if the understanding of how the new tax bracket affected them wasn't the problem, fine, just stick some more money in 401k or IRA and problem solved. Yeah, I never understood folks complaining about paying more taxes because they were being paid more.

[GH85Carrera]

Originally Posted by KC911

Nary a person has ever said "NO THANKS!" to a salary increase because it put them in a higher tax bracket...

Unless they wuz $toooopid

Way way back in the stone ages (mid 1970s) when I was still at my very first job as a photographer, my boss was a super cheapskate. I demanded a raise and it was something like 5 cents per hour. That was just enough to bump me into the next bracket, and my take-home pay went down. I left that job when I demanded he pay me at least 12 grand per year and he said no. I just checked and 12K per year is 1977 is the equivalent of $57,951.49 in today's money. I started my new job in Oklahoma at 12K per year and it increased rapidly.

[KFC911]

Without knowing the specifics Glen, that's just not how tax brackets have ever worked... a bump into the next bracket only increases the tax rate for the amount above the brackets below.

Always been that way ....

[GH85Carrera]

Originally Posted by KC911

Without knowing the specifics Glen, that's just not how tax brackets have ever worked... a bump into the next bracket only increases the tax rate for the amount above the brackets below.

Always been that way ....

All I know is my take home pay went down from him. I certainly don't have my tax records from almost 50 years ago anymore. That paycheck was instrumental in getting me motivated to move away 900 miles to a better job.

[KFC911]

Originally Posted by GH85Carrera

All I know is my take home pay went down from him. I certainly don't have my tax records from almost 50 years ago anymore. That paycheck was instrumental in getting me motivated to move away 900 miles to a better job.

It might have been resolved when you actually filed your tax returns .... just a guess.

[Flat Six]

For an individual, if your taxable income (after deductions) is $89,075 then your tax burden is:

$1,072.50 (10% of $10,725) plus
$3,725.88 (12% of the amount between $10,726 and $41,775 -- $31,049) plus
$10,407.78 (22% of the amount between $41,776 and $89,075 -- $47,299 )

for a total tax burden of $15,204.16 which equates to a marginal tax rate ($15,204.16 / $89,075.00) of 17.1%.

[Flat Six]

Originally Posted by BK911

Below is a clip of the 2022 tax brackets.

Say I make $90k. Is $89k taxed at 22% and $1k taxed at 24%?
Or the whole enchilada taxed at 24%?

What if mommy has a part time job and her income puts us in a higher tax bracket.
Would filing separately reduce our taxes?

I will do the math both ways, but just curious what you smart people do.

Originally Posted by Sooner or later

89 @ 22
1 @ 24

Originally Posted by Crowbob

Yep.

Originally Posted by KC911

Filing jointly, your income (minus standard or itemized deductions) would be taxed at 22% (or less) for the first $83,550, and at 24% for the amount above that.... up to $178,150, etc.

Unless you are really rich .... then it might be much less

edited: Don't think the lower % threshold is shown in the joint table brackets above .... pretty sure there is one.

2nd edit: My dawg typed the original post .... she can't read the brackets gud with no coffee

But she got the jist of graduated brackets right

No, this is not how progressive taxation works in the US. BK911, I don't know where you got the tax bracket information from but -- while it's not technically incorrect -- it's not very clear. This may help, it's directly from the IRS site:





EDIT: This chart is from irs.com, not irs.gov. The #s are a little off.

[Sooner or later]

Flat is correct.

[Flat Six]

Originally Posted by Flat Six

No, this is not how progressive taxation works in the US. BK911, I don't know where you got the tax bracket information from but -- while it's not technically incorrect -- it's not very clear. This may help, it's directly from the IRS site:





EDIT: This chart is from irs.com, not irs.gov. The #s are a little off.

This is from Kiplinger Finance & doesn't have the calculation errors of the above:

[BK911]

Originally Posted by masraum

I believe what SoL said is correct as I understand it.

If you're a 2 income family I don't think filing separately is going to help, but I could be wrong. I'm pretty sure Uncle Sam is going to get his no matter how you file.

Thanks guys.

Reason I asked about jointly/separately is because mommy works part time and does not make that much, and no taxes are deducted from her paycheck. I told her it will all balance out at the end of the year so no biggie, but our refund will be less.

Then I thought about filing separately. I get taxed on my income, and she on hers. She makes so little that she probably won't owe anything. But if it gets added to my income, then I will have to pay her share of taxes. Plus it is really close to pushing me into the next tax bracket.

Guess it all evens out in the wash. I will try both ways and see what happens.

[FA-18C]

Also - this is only taxable income, so after your standard or itemized deduction. Good to run it both ways.