FEDERAL TAX WITHHOLDINGS

HOW MUCH OF YOUR INCOME GOES TO FEDERAL TAXES? Because the United States has a progressive federal tax system, you’re going to land in one of these seven federal income tax brackets in 2016: 10%, 15%, 25%, 28%, 33%, 35% or 39.6%

SLIGHT LIMITATIONS But no matter which bracket you’re in, you won’t pay that rate on your entire 2016 income. There are two reasons: 1.First, you get to subtract exemptions and deductions to determine your taxable income. 2.Second, the government divides your taxable income into chunks based on these tax brackets, and each chunk gets taxed at the corresponding rate.

TAX “BRACKETS” Single filers Taxable incomeTax rate $0 to $9,27510% $9,276 to $37,650$ plus 15% of the amount over $9,275 $37,650 to $91,150 $5, plus 25% of the amount over $37,650 $91,150 to $190,150 $18, plus 28% of the amount over $91,150 $190,150 to $413,350 $46, plus 33% of the amount over $190,150 $413,350 to $415,050 $119, plus 35% of the amount over $413,350 $415,050 or more $120, plus 39.6% of the amount over $415, Federal Income Tax Brackets

TAX “BRACKETS” Married Filing Jointly or Qualifying Widow(er) Taxable incomeTax rate $0 to $18,55010% $18,550 to $75,300$1, plus 15% of the amount over $18,550 $75,300 to $151,900 $10, plus 25% of the amount over $75,300 $151,900 to $231,450 $29, plus 28% of the amount over $151,900 $231,450 to $413,350 $51, plus 33% of the amount over $231,450 $413,350 to $466,950 $111, plus 35% of the amount over $413,350 $466,950 or more $130, plus 39.6% of the amount over $466,950

WHAT YOUR TAX DOLLARS ARE USED FOR Defense: Military Spending – About $680 billion or 18% of the budget Social Security Payments – $882 billion or 23% of budget Major Health Programs – Medicare, Medicaid, Children’s Health Insurance Program – 25% of budget Safety Net Programs – 14 Percent of Budget Unemployment insurance, Food stamps, Low-income housing assistance, Programs for abused and neglected children Interest on the National Debt - $246 Billion – 6% of budget Pensions for Veterans and Federal Retirees “Other” – 13% of budget