Yearly Income Tax

No, the government isn't free!!!

Compare your yearly income to the chart to the right.  Find your "Percent of Income Taxed"  People who earn more money pay more in taxes.  Did you know that?

IMPORTANT

You must also pay for Social Security and Medicare which are two government programs that help you out when you retire.  Everyone must pay for these services. Once you have found the percent of your income you pay in taxes a year, Add 5% to your percentage to pay for Social Security and Medicare.

Use your yearly income and your Percent to find how much you will pay in taxes per year.

If you made \$45,000 your would have to find 15% + 5%  of 45,000 or 20% of 45,000

The easiest way to do this is to change the % into a decimal and multiply.

Example:  20% = 0.20

0.20 x 45000 = 9000 (this is how much you pay in taxes each year.

Record your % of tax and Estimated income tax in box 2a.

 If box 1e is between... your tax bracket is: and % +5% and % +5% and % +5% and % +5% and % +5% and % +5%