Question 1163409
annual taxable income formula:


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if your taxable income is:


$46,605 or less, than your tax is annual taxable income * 15%


$46,605 to $93,208, than your tax is 20.5% * (annual taxable income - $46,605) + 15% * $46,605


$93,208 to $144,489, than your tax is 26% * (annual taxable income - $93,208) + 15% * $46,605 + 20.5% * ($93,208 - $46,605)


$144,489 to $205,842, than your tax is 29% * (annual taxable income - $144,489) + 15% * $46,605 + 20.5% * ($93,208 - $46,605) + 26% * ($144,489 - $93,208)


More than $205,842, than your tax is 33% * (annual taxable income - $205,842) + 15% * $46,605 + 20.5% * ($93,208 - $46,605) + 26% * ($144,489 - $93,208) + 29% * ($205,842 - $144,489)


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the above are the mathematical formulas involved.


the tax table applies the mathematical formulas for you, so that what you see is:


if your taxable income is:


$46,605 or less, than your tax is annual taxable income * 15%


$46,605 to $93,208, than your tax is 20.5% * (annual taxable income - $46,605) + $6,990.75


$93,208 to $144,489, than your tax is 26% * (annual taxable income - $93,208) + $16,544.37


$144,489 to $205,842, than your tax is 29% * (annual taxable income - $144,489) + $29,877.43


More than $205,842, than your tax is 33% * (annual taxable income - $205,842) + $47,669.80


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if your monthly taxable income is $12,000, then your annual taxable income will be 12 * $12,000 = $144,000.


since you are in the tax bracket of $93,208 to $144,489, then your tax is 26% * ($144,000 minus $93,208) + $16,544.37 = $29,750.29