How to Find Your Tax Bracket

CPA “Big Al” Clopine shows you how to find your tax bracket by looking at line 43 on your tax return.

Transcription:

"Let's take a look at the tax return itself. If you go to line 43 on the tax return, this will show you what your taxable income is, and in this example it's a little over $100,000 for a married couple. So I look at last year's 1040 page 2 line 43--$100,000. Now, we're going to go back to this tax table and figure out what bracket you're really in. When you look at the bracket, sure enough that $100,000 for a married couple is going to be between that $74,901and $151,200 so you're in the 25% bracket. So it means that if you're going to get a bonus of $10,000 you're going to pay taxes on 25% of that. Or, if you come up with an extra deduction, then you'll save 25% of that deduction (like a charitable deduction). Of course don't forget state taxes as well"

Season 2 Episode 26

Aired: 7/4/15

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