Question about taxes.....
 

is all of your money taxes at the highest tax bracket 35%, or is only the money over a certain amount $326K subject to the 35% rate.

in short, if line 43 on 1040 2005 is around 550K, what should the tax be. I have my fingers crossed that it is not
550,000(.35) - 19,500 = $173,000

1040 instructions

Re: Question about taxes.....
 

For each segment of income, you pay a different tax rate. I think this IRS chart will answer your question in detail:

IRS 2005 Tax Schedule

I guess this is good news for you. The finger cross worked!

-Andrew

Re: Question about taxes.....
 

[ QUOTE ]
For each segment of income, you pay a different tax rate. I think this IRS chart will answer your question in detail:

IRS 2005 Tax Schedule

I guess this is good news for you. The finger cross worked!

-Andrew

[/ QUOTE ]

So (550,000-326450).35 + 94727.5 = 172970 = 31.44%

Man, I was hoping for something better then that.

Re: Question about taxes.....
 

[ QUOTE ]
$173,000


[/ QUOTE ]
Kane, I dont know anything about taxes in USA but isnt it possible to have resident status in another country being under their jurisdiction ?
173k is quite a prize to pay for voting right in a country you dont even live in...

Re: Question about taxes.....
 

Yeah, I did not realize that the $19.5k from your original post is an IRS number that already figures in the different levels. You are still looking at $173,000. Sorry.

Re: Question about taxes.....
 

[ QUOTE ]
[ QUOTE ]
$173,000


[/ QUOTE ]
Kane, I dont know anything about taxes in USA but isnt it possible to have resident status in another country being under their jurisdiction ?
173k is quite a prize to pay for voting right in a country you dont even live in...

[/ QUOTE ]

anything over $80k is subject to an adjusted tax rate i believe.

Re: Question about taxes.....
 

[ QUOTE ]
[ QUOTE ]
$173,000


[/ QUOTE ]
Kane, I dont know anything about taxes in USA but isnt it possible to have resident status in another country being under their jurisdiction ?
173k is quite a prize to pay for voting right in a country you dont even live in...

[/ QUOTE ]

Ive heard in a few places that the United States is the only country that taxes its citizens working abroad. If I file as a Pro I can take an 80k foreign earned income deduction, but will lose the 1/2 SE tax deduction (which would be about a 15K deduction), and can probably expect the IRS to audit me and try to take this deduction away.