IF I make 2250 Gross monthly income in ca...?

Question

what is the net income? And how much will I loose from fed,state taxes, SS tax, medicare tax and CA SDI tax???

Please serious answers please! Thanks for the help, even if anyone knows the formulas or percentages to figure it out would be helpful.

THANKS

Answer 1

The answer depends largely on what other income you have and what type of deductions you can claim.

Simple ones:

Social security is 6.2% of gross federal wages

Medicare is 1.45% of gross federal wages

More difficult ones:

Federal - this will depends on your available deductions.  The tax rates are 10% on earnings up to $7,825 and 15% on earnings above $7,825 but less than $31,850.  Keep in mind this is on 'taxable income' not gross income.  You'll have a personal exemption $3,500 and possible a standard deduction assuming no one else can claim you (parents) of $5,450.  Assuming you take both deductions, your gross annual income of $27,000 will be reduced to $18,050 resulting in federal tax of $2,316 (an effective rate of approx 8.6%) or $193 per month.

California

Under a similar methodology as above for federal, taxable income of $18.050 will result in California state income tax of $328 per year or $27.33 per month.

I am not sure how much SDI in California is, but it can't be more than a few dollars a paycheck.

$2,250 gross income

(193) federal income tax

(27) state income tax

(140) social security

(33) medicare

(3) SDI

1,854 approximate net paycheck

As you earn more, your federal income tax will increase fastest.

Hope this was complicated enough for you and this is just a simple paycheck.  Imagine if you had a more complicated investment structure (stocks, bonds, interest, children, aged parents).

Certainly makes an argument for a flat tax percentage.