Following is an example for calculating Federal Tax for a Single Filing Status, who is earning $73,000/year. This example is for illustrative and planning purpose and is based on 2005 standard deductions, and exemptions. You may save money if other credits like mortgage deductions are applied. Please refer the Tax Table listed below to know more about the different Tax Brackets.
| Federal Tax Calculation for Single Filing Status | Amount |
| Total Salary | $73,000 |
| Exemption | $3,200 |
| Deduction | $5,000 |
| Your Federal Taxable Income =$73,000 - ($3,200 + $5,000) | $64,800 |
| From Tax Tables: | |
| Federal Taxable Income for the Tax Bracket 0 - $29,700 | $4,090 |
| Federal Taxable Income for the Tax Bracket from $29,700 to $64,800 =($64800 - $29700) = $35,100 So, Federal Tax you have to pay for $35,100 = 0.25 x $35,100 = $8,775 | $8,775 |
| Total Federal Tax you have to pay is $4,090 + $8,775 | $12,865 |
Note: Similary you can calculate your state income tax by referring the tax tables.
Federal Income Tax Table for Single Filing Status- 2005| Sl.No | Taxable Income Between (Amount in $) |
Tax Percent Description |
| 1 | 0-7,300 | 10% of the amount over 0$ |
| 2 | 7,300-29,700 | $730.00 plus 15% of the amount over 7,300$ |
| 3 | 29,700-71,950 | $4,090.00 plus 25% of the amount over 29,700$ |
| 4 | 71,950-150,150 | $14,652.50 plus 28% of the amount over 71,950$ |
| 5 | 150,150-326,450 | $36,548.50 plus 33% of the amount over 150,150$ |
| 6 | 326,450-no limit | $94,727.50 plus 35% of the amount over 326,450$ |
Please visit http://irs.gov for more information on Federal Tax.
Married Filing Status
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