Comments on: Basics To Figuring Out Your Tax Bracket

By: Phil

Phil — Sat, 04 Oct 2008 03:26:43 +0000

Yeah Dy, quit complaining and pay your fair share Haha, just razzing ya.

I’m in the 25% bracket, but I come from a family that never made out of the 15% marginal.tax rate.

By: Andy

Andy — Sat, 26 May 2007 22:25:04 +0000

ahh. thanks.

By: Teri

Teri — Sat, 26 May 2007 22:22:46 +0000

Oh I thought I already replied – but don’t see it. Sorry Andy. If you make $1, sorry to say, it is taxable. Paulito’s comment is right on. There is no thresshold here. If you have expenses relating to this work though, you can use the expenses to offset the income. Sorry to say though any side income is subject to self-employment tax too, for the most part.

By: Paulito

Paulito — Fri, 25 May 2007 16:47:04 +0000

Andy, Joseph’s comment is accurate, in that all income must be reported:

- if your shoes suddenly increased in value, and you sold them for a hefty profit, the IRS would come knocking
- cat-sitting is reportable income (just like babysitting, income from hobbies, etc)

By: Andy

Andy — Thu, 24 May 2007 22:08:45 +0000

No, not all is taxable. I guess it depends onhow income is defined. If I sell my shoes for money, then that is not taxable income. If I sell shoes for a living then it is. If my neighbor pays me to watch her cat, that is not taxable, if I watch cats for a living, then it is… So, somewhere there is a definition of what constitutes taxable income. And, I think it is a dollar figure. This job I am doing for only one week is not my source of income, and will pay right around $2,000. I remember something that income not related to your regular vocation which is less than $2,000 is not considered taxable income. If so,then I dont want to exceed that limit (too much of a hassle to do taxes).

By: Joseph

Joseph — Thu, 24 May 2007 21:32:24 +0000

All income is taxable, no matter where it came from. Even if it is from illegal things.

By: Andy

Andy — Thu, 24 May 2007 01:27:12 +0000

I will be doing some work on the side that is un-related to my job. It will only be for a week. I understand that earning less that $2,000 for anything unrelated to your income is not taxable. Is this true, or what is the maximum amount you can make and not need to claim it on taxes?

By: Amy F.

Amy F. — Wed, 23 May 2007 16:57:43 +0000

Yes, if you’re already making that much money, it doesn’t seem like things are too bad!

Teri, thanks for explaining this issue so simply and clearly.

By: Teri

Teri — Wed, 23 May 2007 16:35:07 +0000

Not necessarily, but I have to say you are making a SUPER wage for right out of college then.

But have some kids and get a mortgage, it ain’t so bad.

Setting aside money for retirement can help too.

& if you continue to make a lot of money, well that is the downside. It will definitely get worse…

By: Dy

Dy — Wed, 23 May 2007 16:15:21 +0000

First year out of college and I’m already in the 28% tax bracket. It only gets worse from here right?