CPA “Big Al” Clopine shows you how to find your tax bracket by looking at line 43 on your tax return.
Transcription:
“Let’s take a look at the tax return itself. If you go to line 43 on the tax return, this will show you what your taxable income is, and in this example it’s a little over $100,000 for a married couple. So I look at last year’s 1040 page 2 line 43–$100,000. Now, we’re going to go back to this tax table and figure out what bracket you’re really in. When you look at the bracket, sure enough that $100,000 for a married couple is going to be between that $74,901and $151,200 so you’re in the 25% bracket. So it means that if you’re going to get a bonus of $10,000 you’re going to pay taxes on 25% of that. Or, if you come up with an extra deduction, then you’ll save 25% of that deduction (like a charitable deduction). Of course don’t forget state taxes as well”
