somefudge
Jul 17, 2008, 10:39 AM
I am switching jobs and I know about how much I am going to make. I need to know roughly how much I will pay in taxes per month. I am married with three kids and we will make less than 25,000 a year. Can you give me a rough percentage to calculate what I will owe?
AtlantaTaxExpert
Jul 17, 2008, 01:55 PM
If your $25K income is the ONLY source of income for you family, you will owe ZERO income taxes.
The FIVE personal exemptions (@ $3,500 each) is worth $17,500 in deductions.
The standard deduction will be $10,900.
Those two deductions by themselves EXCEED your $25K salary.
However, you will be entitled to BOTH a Child Tax Credit and the Earned Income Credit when you file, so you will get a significant refund even if you have had NO money withheld for federal income taxes.
MukatA
Jul 17, 2008, 11:41 PM
You will pay social security at 6.2% and Medicare at 1.45%. With Earned Income Credit, you will get money from IRS without paying any federal income tax.