Your Income Tax Rate– Financial Focus : Income Tax Planning, Chapter 8

So, why was it so important to go over the prior chapters of our Income Tax Series:

Chapter 2 INCOME & DEDUCTIONS
Chapter 3 FAMILY & EDUCATION
Chapter 4 INVESTING
Chapter 5 BUSINESS
Chapter 6 RETIREMENT
Chapter 7 ESTATE PLANNING

 

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Because if you did not do your “Proper Tax Planning” prior to…NOW, it’s time to pay the piper. You’ve got to pay the Taxman at IRS (and your State).

Like the Super Bowl XLIX champions New England Patriots, success comes from preparation. For taxpayers, winning is all about Tax Preparation!

 

On average, if you are a full-time working New Yorker, making $50,000 a year, get ready to give up between Federal, State & City Taxes — 37%. That’s 37 cents out of every dollar you earn, baby!

 

Do NOT think H & R Block (just an example) can save you from this! There are no shortcuts. Except, of course, to jail.

 2014 Individual income tax rate schedules

Regular tax brackets
4 brackets
*Single   *Head of household  *Married filing jointly or surviving spouse  *Married filing separately

Single
10%.  $ 0 – $ 9,075
15%.  $ 9,076 – $ 36,900
25%.  $ 36,901 – $ 89,350
28%.  $ 89,351 – $ 186,350
33%.  $ 186,351 – $ 405,100
35%.  $ 405,101 – $ 406,750
39.6% Over $ 406,750

Head of household
10%.  $ 0 – $ 12,950
15%.  $ 12,951 – $ 49,400
25%.  $ 49,401 – $ 127,550
28%.  $ 127,551 – $ 206,600
33%.  $ 206,601 – $ 405,100
35%.  $ 405,101 – $ 432,200
39.6% Over $ 432,200

Married/jointly
10%.  $ 0 – $ 18,150
15%.  $ 18,151 – $ 73,800
25%.  $ 73,801 – $ 148,850
28%    $ 148,851 – $ 226,850
33%.  $ 226,851 – $ 405,100
35%.  $ 405,101 – $ 457,600
39.6%  Over $ 457,600

Married/separated 
10%.  $  0 – $ 9,075
15%.  $ 9,076 – $ 36,900
25%.  $ 36,901 – $ 74,425
28%.  $ 74,426 – $ 113,425
33%.  $ 113,426 – $ 202,550
35%.  $ 202,551 – $ 228,800
39.6% Over $ 228,800

                                              2014 Corporate Income tax rate schedule

Tax brackets
15%.  $ 0 – $ 50,000
25%.  $ 50,001 – $ 75,000
34%.  $ 75,001 – $ 100,000
39%.  $ 100,001 – $ 335,000
34%.  $ 335,001 – $ 10,000,000
35%.  $ 10,000,001 – $ 15,000,000

38%.  $ 15,000,001 – $ 18,333,333

35%.  Over $ 18,333,333

 

Now, do you really want to pay these rates? There is a solution!

Start Chapter 1 and re-read it one more time. And start your tax planning for next year.

 

https://thebronxchronicle.com/category/personal-finance/

 

Anthony Rivieccio is the founder & the CEO of The Financial Advisors Group, celebrating their 18th year as a fee only financial planning firm specializing in solving one’s financial problems. Anthony has been a recognized financial expert since 1986. His financial expertise has been recognized by many national and local media outlets including: Klipingers Personal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet Channel 67 TV, The Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS1010 Radio, The Bronx News and The Bronx Chronicle.

Anthony can be reached at 347.575.5045

 

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