Federal personal income tax联邦个人所得税.pptVIP

Federal income-based taxes How are you taxed at the federal level? Federal personal income tax Based on income reported on your 1040 form Used for general spending Tiered system designed so that those with higher incomes pay higher percentages Example of finding taxes owed Taxable income = $80,000 Taxes owed = 7150*.10+ [29050-7150]*.15+ [70350-29050]*.25+ [80000-70350]*.28 = 715+3285+10325+2702 = $17,027 Social Security tax rates Two tier rate system Used to pay current beneficiaries Also known as a payroll tax since your employer pays an amount equal to what you pay Social Security tax rates Each dollar of earned income up to $84,900 income is taxed at 6.2%. Example: social security taxes owed on earned income of $80,000 =0.062*$80,000 = $4,960. Each dollar of earned income over $84,900 is taxed at 0%. Example: for an earned income of $90,000 social security taxes owed are: $84,900*.062 +($90,000-$84,900)*0 = $5263.80. Medicare tax There is only one tax rate on income to support the Medicare program of health insurance for the elderly. The Medicare tax rate 1.5%, 1.5 cents per dollar Example. $80,000*.015=$1,200. Tax burden Progressive tax – tax rate increases with income Example: federal personal income tax Proportional tax – tax rate is constant regardless of income Example: Medicare tax Regressive tax – tax rate decreases with income Example: Social Security tax Tax burden Average tax burden Sum all taxes owed Divide by income Example: Income $80,000 $17,027 federal income tax +$4,960 social security tax +$1,200 medicare tax = $23,187 paid in taxes Average tax burden = $23,187/$80,000 = .289 or 28.9% Tax burden Example: Income $80,000 $17,027 federal income tax +$4,960 social security tax +$1,200 medicare tax = $23,187 Average tax burden = $23,187/$80,000 = .289 or 28.9% * * * Three income based federal taxes: Personal income tax Social security tax Medicare tax 10% 15% $7150 $29050 $70350 25% 28% $146,750 33% $319,000 35% $0 TAXABLE INCOME MARGINAL TA