Accounting & Bookkeeping & Small Business Forum

[GoldenRuleAC]

How do I figure out a person’s tax bracket?


I am trying to figure this out: who would have a lower income tax bracket at the same income level?


1) A married man who is a business owner and has 4 dependent children, and a $15,000 mortgage

2) A single man who is a business owner and has no children and no debt.


Thank you in advance!

[Richard Noot]

two different taxpayers can be in the same tax brackedt but still have different amounts of taxes that need to be paid. The reason being that marital status, age of taxpayers, age of dependents, relationship of dependents, taxcredits, tax deductions, state of residence, type of income, and a multitude of other factors come into play. I personally have had clients making $60,000.0 where one client was in a 37% tax bracket and another owed no taxes whatssoever.

[RobJ]

A person's taxable income defines his/her tax bracket. Everything else being equal, the single guy with a standard deduction will pay more tax, but could still be in the same tax bracket as the married guy - one at the higher end of the spectrum and one at the lower end.

[Richard Noot]

RobJ wrote: A person's taxable income defines his/her tax bracket. Everything else being equal, the single guy with a standard deduction will pay more tax, but could still be in the same tax bracket as the married guy - one at the higher end of the spectrum and one at the lower end. In most cases what you say is true, but not always. Other factors come into play other than taxable income such as credits and where the taxpayer lives

[RobJ]

Richard,

There are a myriad of scenarios which could be used to muddy the water and would take each of us a lifetime to unravel. The important question is why the question was asked in the first place. Otherwise, we're both left to make assumptions based on our interpretation of the OP's question.

[Richard Noot]

RobJ wrote: Richard,

There are a myriad of scenarios which could be used to muddy the water and would take each of us a lifetime to unravel. The important question is why the question was asked in the first place. Otherwise, we're both left to make assumptions based on our interpretation of the OP's question. EXACTLY. That is why tax bracket is immaterial.

[RobJ]

Richard Noot wrote: EXACTLY. That is why tax bracket is immaterial.
I can't say that it's immaterial until I know the reason the OP is asking the question.