The IRS Released New Tax Brackets For 2020.

If you earned $9875, you'll pay $987.50. Whaat? Maybe it's just me, but if that's somebody's annual income, they shouldn't be paying one red cent...considering that Jeff Bezos will pay absolutely nothing.

Clever how the big changes were written into the law so that they wouldn't kick in until this year. This is how we fight the war on poverty.

What middle class?
 
GeorgiaXplant said:
If you earned $9875, you'll pay $987.50. Whaat? Maybe it's just me, but if that's somebody's annual income, they shouldn't be paying one red cent...considering that Jeff Bezos will pay absolutely nothing.

Clever how the big changes were written into the law so that they wouldn't kick in until this year. This is how we fight the war on poverty.

What middle class?
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When the article is read there is this to think about.

Another thing to keep in mind that tax brackets only apply your taxable income, which is what’s left over after subtracting your standard or itemized deductions, plus any other adjustments.
 

Knight said:
When the article is read there is this to think about.

Another thing to keep in mind that tax brackets only apply your taxable income, which is what’s left over after subtracting your standard or itemized deductions, plus any other adjustments.
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But the article does say "up to $9,875. I kind of think that anyone is making that or less shouldn't be taxed 10%, particularly single parents who can hardly make ends meet as it is. And yeah...especially since the uber rich get away with paying nothing or almost nothing.
 
It seems that every time the government "adjusts" the tax brackets, I wind up paying more....and, we're right in the middle of the "so called" middle class tax brackets. If anyone believes that Washington is really concerned about improving the lot of the Middle Class, I would be willing to sell them my stake in the Brooklyn Bridge.
 
OneEyedDiva said:
But the article does say "up to $9,875. I kind of think that anyone is making that or less shouldn't be taxed 10%, particularly single parents who can hardly make ends meet as it is. And yeah...especially since the uber rich get away with paying nothing or almost nothing.
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My understanding is that after deductions if your income is up to $9875.00 a wage earner would pay 10%.
 
Death and taxes...ironic isn't it. A friend that ask for my opinion has an investment in the stock market that she would have to pay 40% tax on if she sold it. She is 85. Irony is, if she dies, her heirs are free from tax to over $600,000. Guess its ok if you acquire it, but don't try to spend it, just die and let your heirs enjoy the fruits of your labors.
 
Knight said:
My understanding is that after deductions if your income is up to $9875.00 a wage earner would pay 10%.
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rkunsaw said:
You can earn $40,000 or $50,000 and still not have a taxable income of $9,875.
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That well may be but I differentiate between income and taxable income. My point is that if your income (not taxable income) is $9,875.00 one shouldn't have to pay a 10% in taxes.
And yes rkunsaw...I realize that. Due to my pension exclusion and the fact that N.J. doesn't tax social security, my taxable income when filing state taxes is quite a bit lower than my actual income.
 
OneEyedDiva said:
That well may be but I differentiate between income and taxable income. My point is that if your income (not taxable income) is $9,875.00 one shouldn't have to pay a 10% in taxes.
And yes rkunsaw...I realize that. Due to my pension exclusion and the fact that N.J. doesn't tax social security, my taxable income when filing state taxes is quite a bit lower than my actual income.
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So are you saying that a person with an income of only $9875.00 wouldn't be able to use the standard deduction?
 
Knight said:
So are you saying that a person with an income of only $9875.00 wouldn't be able to use the standard deduction?
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I don't know Knight, although I imagine they could...it would just make their taxable income $0. I'm sure the 2020 1040 tax booklet gives an explanation about that situation. Since I use H & R Block Tax Cut, usually any questions I might have are answered within the program.
 
OneEyedDiva said:
I don't know Knight, although I imagine they could...it would just make their taxable income $0. I'm sure the 2020 1040 tax booklet gives an explanation about that situation. Since I use H & R Block Tax Cut, usually any questions I might have are answered within the program.
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I keep going back to the taxable portion of the article. There are probably many that will hit the $0 taxable due to the allowed deductions. But as a starting point even the $9875.00 for those that hit that income and are living close to the pay check to paycheck life that 10% seems high.
 
That's after all deductions including the standard 14K?

Also if I read the article right(fast once) it seems every time one hits a different bracket you have to pay that tax but total income is subtracted every bracket???
 


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