Advantage Software LLC How do I Determine My Income Tax Bracket?
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     Income Tax Bracket /  Federal Marginal Tax Rate 
 
                                                   (See 2014 income tax rate table below)
 
  It is important to understand how your income tax bracket also known as federal marginal tax rate impacts your taxable income.  Being in a 28% income tax bracket does not mean that all of your income is taxed at 28%.  Your income tax bracket only pertains to that portion of your income that falls between the lower and upper end of your income tax bracket range.  For example, in the income tax rate table below, if you are married and filing jointly and you are in a 28 % income tax bracket, only that portion of your income that exceeds 148,850 and is less than 226,850 will be taxed at the 28 % income tax rate.  For an income of 156,850, only 8,000 of your income will be taxed at 28%.  That is 156,850 - 148,850.  Note that all of your income between 73,800 and 148,850 is taxed at 25%.  In summary, the tax rate that you pay is less than your income tax bracket since it is applied only to the last dollars that you make.

What income tax bracket ( Marginal Tax Rate) would you enter in the On Target real estate software if you are married filing jointly and you earn 70,000 from sources other than income property and you are considering purchasing an income property with a $20,000 taxable income?  Your taxable income from all sources after the purchase of the income property would be 90,000 dollars which would put you in a 25% tax bracket.  You would enter 25 for your Federal Marginal Tax Rate.

 
 
 
 
 
 
               Income Tax Rate Table for 2014:
 
 
  Single Married - Joint Head of Household Married - Separate
10% 0 - 9,075 0 - 18,150 0 - 12,950 0 - 9,075
15% 9,075 - 36,900 18,150 - 73,800 12,950 - 49,400 9,075 - 36,900
25% 36,900 - 89,350 73,800 - 148,850 49,400- 127,550 36,900 - 74,425
28% 89,350 - 186,350 148,850 - 226,850 127,550 - 206,600 74,425 - 113,425
33% 186,350 - 405,100 226,850 - 405,100 206,600 - 405,100 113,425 - 202,550
35% 405,100 - 406,750 405,100, - 457,600 405,100 - 432,200 202,550 - 228,800
39.6% 406,750 and up 457,600 and up 432,200 and up 228,800 and up

 

  If you are thinking about purchasing Income Property.  The On Target real estate investment software gives you a huge advantage over the casual investor.  On Target generates many different reports and graphics to improve the decision making process.  The On Target real estate analysis software helps you determine the effect of state and federal income tax rates on your income property's cash flows and sales proceeds.  On Target applies your state and federal income tax rate / income tax bracket to the income from your rental property.   Don't make a large investment without understanding the impact of taxes on your profits.  On Target costs just $99.95 and provides in-depth financial analysis.   To order the On Target real estate software, click on  Purchase Software   Be sure to check out the many financial features offered by this unique software.  Software Features    The On Target real estate software includes a 30 day money back guarantee and free support.

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