for a married couple the tax is 0% on up to 50K combined, now my question, let's say a couple has a combined income of 55K, do they pay 5% on the entire 55K or just on the 5K over the 50K, in other words is the tax on everything below or just on what goes into that bracket?
Let's go a bit further for clarification, let us say, I earn 110K in a year, my wife earns 5K giving us a total income for the year of 115K, what would our tax be, assuming no deductions.
Marginal tax rates only apply to the amount above the next lower rate. So your tax is only due on the 5 about 50. Do you currently pay your taxes?
Marginal tax rates only apply to the amount above the next lower rate. So your tax is only due on the 5 about 50. Do you currently pay your taxes?