U NDERSTANDING T AXES

W HAT IS A T AX ?

Tax is a financial charge on a taxpayer by the federal and state governments.

S O … W HAT THINGS CAN YOU BE TAXED ON ?

Goods and Services Personal or Business Income

R EMEMBER THAT THERE ARE S TATE AND F EDERAL T AXES They are the ones in charge of collecting tax revenues for the State and Federal governments.

B UT WHY WOULD THEY TAKE OUR MONEY AWAY ?!?!?!

W HAT ARE THE TAX RATES ? Single Taxable IncomeTax $0 – $8,50010% of taxable income $8,500 – $34,500$850 plus 15% of $8,500 $34,500 – $83,600$4,750 plus 25% of $34,500 $83,600 – $174,400$17,025 plus 28% of $83,600 $174,400 – $379,150$42,449 plus 33% of $174,400 $379,150+$110, plus 35% of $379,150 Married Taxable IncomeTax $0 – $17,00010% of taxable income $17,000 – $69,000$1,700 plus 15% of $17,000 $69,000 – $139,350$9,500 plus 25% of $69,000 $139,350 – $212,300$27, plus 28% of $139,350 $212,300 – $379,150$47, plus 33% of $212,300 $379,150+$102,574 plus 35% of $379,150

S O … H OW MUCH DO I HAVE TO MAKE TO BE REQUIRED TO FILE TAXES ?

Y OU MUST FILE TAXES IF YOU EARN THE FOLLOWING AMOUNTS OF INCOME : Self-employed, any age: $400 Children and Teens classified as a dependent: $5,700 Single, under 65: $9,350 Single, over 65: $10,750 Married, filing jointly, both spouses under 65: $18,700 Married, filing jointly, one spouse over 65: $19,850 Married, filing jointly, both spouses over 65: $20,900 Married, filing separately, any age: $3,650