How To Handle With Tax Preparation: Difference between revisions
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Revision as of 03:19, 17 September 2024
The IRS has set many tax deductions and benefits in place for tax payers. Unfortunately, some taxpayers who are earning a high level of income can see these benefits phased out as their income climbs.
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The 'payroll' tax applies at a set percentage of the working income - no brackets. Being an employee, you pay 6.2% of your working income for Social Security (only up to $106,800 income) and a person specific.45% of it for Medicare (no limit). Together they take a lot more 7.65% of your income. There is no tax threshold (or tax free) associated with income for this system.
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