posted on Jul, 24 2011 @ 09:19 PM
reply to post by IncognitoGhostman
Hmm doesn't sound quite right offhand, but I'm not a tax expert by any means. You're not including SS/Medicare as part of your number are you?
Your bracket depends on a lot of things: marital (filing) status, income (obviously, but includes stocks you sold and interest in any bank accounts),
taxes already paid (property taxes, car own tax), deductions for children, any interest paid on a mortgage of your main residence, and any other
credits that are "offered" that year (and a bunch of other stuff too).
Not to mention that they change the "rules" every year.
Lately for me it's been pretty easy because I have my wife not withhold anything (like you) and our numbers work out to near $0... Before that though,
I'd sell stocks (losers on a year I would not get a refund and winners on years where I would have got a refund) and/or adjust my withholdings with my
employer for the last 3 months of the year or so. You can also contribute to an IRA to lower your tax burden.
The trick is keeping track of all the goes-in-to's and goes-out-of's so that you already know the answer before the end of the year (not around April
All that said, I'm with TOA... Income tax is dumb (and overly complicated). But if you're only paying a few hundred bucks at the end of the year,
you're doing alright in my book!
edit on 7/24/2011 by xenthuin because: Typo
edit on 7/24/2011 by xenthuin because: Another typo
7/24/2011 by xenthuin because: Added last sentence