Taxes | Myndbook

Standardized Deduction

* For Single Tax payer is $6300 * For Married Filing Jointly, it is $12600

Itemized Deductions

* State Taxes

* Local Taxes

* Property Taxes (Own Primary Home)

* Mortgage Interest

* Theft or other losses if they exceed 10% of AGI

* Gambling losses to the extent of gambling income

* Medical expenses if they exceed 7.5% of AGI (Adjusted Gross Income)

Income

* W2

* Interest 1099-INT

* Dividends 1099-DIV

Deductions (pick one)

Sales

* 1099-Misc

* Other receipts

Business Income/Loss

Expenses

* Home office

* Vehicle

* Marketing

* Telephone

* Utilities

* ...

Gross Income, AGI, and Taxable Income

Gross Income = Total amount earned.

Adjusted Gross Income = Gross Income - "Specific Reductions".

Taxable Income = AGI - allowances for personal exemptions and itemized deductions.

"Specific Reductions"

- Expenses of carrying on a trade or business including most rental activities (other than as an employee)

- Certain business expenses of teachers, reservists, performing artists, and fee-basis government officials,

- Health savings account deductions,

- Certain moving expenses

- College tuition, fees, and student loan interest (with limitations and exceptions),

Income

Taxable Income

Capital Gains/Losses

Rental Income/Loss

Tax Brackets

2016 Federal Income Tax Brackets

Tax rate Single (taxable income) Married, filing jointly (taxable income) 10% $0 to $9,275 $0 to $18,550 15% $9,276 to $37,650 $18,550 to $75,300 25% $37,650 to $91,150 $75,300 to $151,900 28% $91,150 to $190,150 $151,900 to $231,450 33% $190,150 to $413,350 $231,450 to $413,350 35% $413,350 to $415,050 $413,350 to $466,950 39.6% $415,050 or more $466,950 or more

Tax to Pay

Other Taxes

* Social Security 6.2%

* Medicare 1.45%

* State Taxes

* City Taxes

Exemptions

$4000 per dependent

Tax Deferrals

* Retirement savings 401k, IRA, etc.

Income You Keep

Investments

Tax Efficient:

* Roth IRA - future earnings are tax free

Taxable:

* Non-retirement savings