ANSWERS: 1
  • Tax rates vary significantly from state to state. Some states have no taxes, while others have rates in the range of federal taxes for the higher brackets. To figure out what tax bracket you fall into for your state, you will need to have your adjusted gross income from your federal income tax form. You can then calculate your deductions and determine your rate. In addition, some municipalities assess their taxes through the state as a piggy-back tax. You will need to check locally to see if this applies to you.

    State income tax brackets

    Figure out your adjusted gross income from your federal 1040, 1040A or 1040EZ tax form. If you haven't done your federal taxes, you can estimate or interpolate from last year's tax form. Unless you are on the cusp, the percentage difference will not change. Go to the website for the Federation of Tax Administrators. The table on that page will show the tax rates and deductions by state. Find your state and subtract the personal and standard deductions that apply to you, shown in the column on the right, from your adjusted gross income. Your tax bracket is determined by the resulting number, which is an estimate of your taxable income. Refer to the left column on the table for your state to see your tax rate. To calculate an estimate for your tax, multiply your taxable income by the percentage shown. For example, if the final estimate of your taxable income is $35,000, and you are in the 5 percent tax bracket, multiply $35,000 by 0.05, for an estimated tax of $1,750. If you are not taking standard deductions, you will need to estimate what your total deductions will be and subtract that number from your adjusted gross income to determine your tax bracket. From there, multiply as above to see what your estimated state tax will be. Some cities and local municipalities also assess their taxes using a state form. Check with the department of revenue for your state to see if this applies to your town and to determine how to figure that tax. You will likely be required to submit payment for both with your state form if your municipality collects its tax via the state form. There are many other deductions that you may be eligible for, and other taxes you might owe, beyond those mentioned here. It is advisable to speak to a tax professional if you have any questions.

    Source:

    Federation of Tax Administrators

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy