what is gross annual income?

[kitkit201]

is it the income you have after taxes or before?
\

thanks!

 

[GeneValgene]

before i think?

 

[RossMAN]

Gross - Before

Net - After taxes and deductions

 

[kitkit201]

so for a typical 40,000 gross annual income individual, how much would s/he have net after taxes? a rough estimate

 

[wedi42]

$20

 

[Yossarian]

maybe 28k

 

[Aquaman]

Originally posted by: RossMAN
Gross - Before

Net - After taxes and deductions

right on

Cheers,
Aquaman

 

[CPA]

Originally posted by: kitkit201
so for a typical 40,000 gross annual income individual, how much would s/he have net after taxes? a rough estimate

Well, a lot depends on the state you live in and your withholdings for Fed tax.

Just use this calculation:

Gross x (1.00-.0765-State/local rate-estimated Fed rate) Make sure rates are in decimal format

40k single now withholdings will put you in the 27% Fed tax bracket. Use this as a guide.

If you're not sure your state rate, check this out.

 

[Vic]

Before.

If you're looking for a loan and you're a W-2 employee, it's either Box 1 or Box 3 (whichever is greater) on your W-2 form.

Originally posted by: kitkit201
so for a typical 40,000 gross annual income individual, how much would s/he have net after taxes? a rough estimate

With no kids and standard deductions only? Your federal tax liability would be $5,074 plus $2,940 for FICA plus whatever your state and local taxes are. In the unlikely event of no state or local income taxes, your net would be $31,986 or $2,665.50/month.

edit: this was done using the 2002 rates. CPA obviously has a better inside track on the new structure.

 

[BrunoPuntzJones]

Originally posted by: johngute
$20

I found this funny.

 

[Cyberian]

Originally posted by: CPA
Well, a lot depends on the state you live in and your withholdings for Fed tax.

Just use this calculation:
<< snip >>

Who do think you are, an accountant or something?

 

[CPA]

Originally posted by: Cyberian

Originally posted by: CPA
Well, a lot depends on the state you live in and your withholdings for Fed tax.

Just use this calculation:
<< snip >>

Who do think you are, an accountant or something?

ooops, sometimes I can't stop my accounting nerdness. sorry

 

[CPA]

Oh, and one more thing: the calculations and rates are only good if you have no 401k or medical/dental deductions. If you have those, you need to take them into consideration.

sorry, more accounting nerdness again.

 

[CTrain]

Originally posted by: PipBoy
maybe 28k

I make pretty close to 40K and I'll net about 29K after taxes.
About 8K of my income are bonuses so they take more taxes out for bonuses(about 40%)
This is Florida so no state income taxes.

I'm guessing if all of my 40K was based, I'll probably net 31-32K.

 

[CTrain]

double post

 

[CPA]

Originally posted by: CTrain

Originally posted by: PipBoy
maybe 28k

I make pretty close to 40K and I'll net about 29K after taxes.
About 8K of my income are bonuses so they take more taxes out for bonuses(about 40%)
This is Florida so no state income taxes.

Yes, by law, regardless of your normal withholdings, your employer must withhold 28%, plus the 7.65 for FICA on bonus wages. Personally, I think it's ridiculous.

 

[Salvador]

Yeah.. Gross is always the full amount and net is after certain things are factored in. It's the same with hp and torque. A gross hp number is usually taken without any kind of accessories on an engine and the net hp is after they factor in the losses that accessories take on the engine.

FYI.. Did you know that the older cars of pre-1971 were rated as the gross hp and after 1971, they were rated as net hp? The difference can be as much as 30%.

Sal

 

[Ylen13]

so how much tax would i pay for gross of 200,000 a year.All money are check so no way not to show it

 

[huey1124]

Originally posted by: CTrain

Originally posted by: PipBoy
maybe 28k

I make pretty close to 40K and I'll net about 29K after taxes.
About 8K of my income are bonuses so they take more taxes out for bonuses(about 40%)
This is Florida so no state income taxes.

I'm guessing if all of my 40K was based, I'll probably net 31-32K.

no, your net is same no matter what. if you make 40k in a year, you will pay same amount in tax, whether you received it through base pay or bonus. with bonuses, government withholds more up front, but you will get it back when you do your income taxes. when calculating net income, it is after your tax liability to the penny.