022 - How Does Our Tax System Work?
An episode of the Real Personal Finance podcast, hosted by Scott Frank and James Conole, titled "022 - How Does Our Tax System Work?" was published on November 20, 2019 and runs 16 minutes.
November 20, 2019 ·16m · Real Personal Finance
Summary
Progressive tax bracket Everyone pays $1,905 on first $19,050 of taxable $140k taxes at $400k? 35% tax bracket Actual taxes = $91,379 (22.8% taxes) Tax Rate Taxable Income Bracket 10% $0 to $19,050 12% $19,051 to $77,400 22% $77,401 to $165,000 24% $165,001 to $315,000 32% $315,001 to $400,000 35% $400,001 to $600,000 37% $600,001 or more Deductions ...
Episode Description
- Progressive tax bracket
-
- Everyone pays $1,905 on first $19,050 of taxable
- $140k taxes at $400k?
- 35% tax bracket
- Actual taxes = $91,379 (22.8% taxes)
| Tax Rate | Taxable Income Bracket | |
| 10% | $0 to $19,050 | |
| 12% | $19,051 to $77,400 | |
| 22% | $77,401 to $165,000 | |
| 24% | $165,001 to $315,000 | |
| 32% | $315,001 to $400,000 | |
| 35% | $400,001 to $600,000 | |
| 37% | $600,001 or more |
- Deductions
-
- Standard deduction - $24,400
- Itemized - mortgage interest, state/local taxes, charitable giving, medical expenses over 7.5% of AGI
- Other considerations
-
-
- States have separate tax brackets too
- Social Security @ 6.2% up to $132,900; Medicare @ 1.45% not capped
- Different types of taxes for earned income, capital gains, dividends
-
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James
Scott
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