1040 Federal Rates for 2006?
A couple filing jointly, claiming standard deductions and
standard exemptions, with $ 30,000 income ?
Thanks in advance for your informed answer.
Answer:
You didn't mention if the couple is under the age of 65, so I'll assume that they are. It breaks down as follows:
AGI: $30,000
Pers Exemption: ( 6,600) 3,300 x 2
Std Deduction: (10,300)
Taxable Income $13,100
Tax Rate 10%
Federal Tax $1,310
18%
Should only be a 10% tax bracket, as the % (to my knowledge) hasn't gone up from 2005 standards yet. So it would break down like this.
30000 Income
-10000 Standard MFJ deduction
-6400 Standard Exemption x2
---------
13,600 Adjusted Gross Income
Tax Liability would be 1363
Note that the Standard Deduction and Personal Exemption may change for 2006, but hasn't yet.
Edited, the CPA is right, the amounts did change. Should have looked on IRS website. Her calculations are correct.
if i were you, i would wait until dec 2006 before finding out. since the tax laws change verably a few dollars and percentage here and there just before the new tax season starts, and since the tax season is always a year behind, the most accurate numbers will be found just before the season starts.
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