NationStates Jolt Archive

For anybody good with taxes or knows some statistics and stuff...

What is the LEAST that somebody would have to pay in income taxes, assuming that they have a full-time, minimum wage job, and don't have any funky tax exceptions that don't apply to a significant amount of people?

Just looking for a realistic, yet fairly low, number to show some number amounts with in a research paper.

Where?

Married or single?
How many children (if any)?
Are they at least 25 or under 25?
What state?
Income taxes only or are you including wage taxes?

Those are the 5 big ones.

Which country? Which part of the country? Which fiscal period? What job? What social and marital status? What age?

By the by, many countries do not have minimum wages.

What's the minimum wage?

What counts as full-time in that country?

What are the marginal tax rates?

What's the minimum personal exemption (assuming there is one)?

If you know these answers, you can do the math yourself.

For anybody good with taxes or knows some statistics and stuff...

What is the LEAST that somebody would have to pay in income taxes, assuming that they have a full-time, minimum wage job, and don't have any funky tax exceptions that don't apply to a significant amount of people?

Just looking for a realistic, yet fairly low, number to show some number amounts with in a research paper.

Here in Brazil, people earning a minimum wage don't come close to paying income tax. So zero.

Oh! Sorry, I forgot to mention...United States.

State...no state that has an income tax above the federal one.

And as for the other stuff...whatever will cause this person to pay the least amount of income tax possible...but let's say no kids, so he doesn't have 18 kids and paying nothing at all becuase all of his kids have exemptions.

Like I said, I need a low yet realistic number.

Google for: Form 1040EZ

Working full time is 2080 hours/year. Multiply that by your minimum wage hourly salary and then do the form. Theres your federal taxes.

The 1040EZ exists for that kind of taxpayer.

I'm curious about what exactly you're trying to show with your paper. I'm concerned that you are trying to find numbers to support your argument rather than getting the numbers and using those to reach a conclusion.

income Federal income tax
0-7500 dollars 10%

7500 to 30,000 15%

30,000 to 75,000 25%

75,000 to 150,000 30%

150,000 and up 31%


plus 6% social security depending on what type of job you have
plus whatever state income tax you have....for minimum wage in Alabama its another 2% tacked on......in NY its another 4%.

Well, lets think. If he works 40 hours per week at $5.15 an hour for 52 weeks, he'll make $10,712 gross. His share of social security is 7.65% or $819.47. Medicare is 1.5% or $160.68. He also has FICA and so forth withdrawn as wage taxes, but the exact percentages are failing me at the moment. We'll say that he gets $1,200 drawn out for all his wage taxes (probably slightly low).

This leaves him with a total of $9,512 to report as income. As a married person, the standard deduction for 2005 was $10,000. His income is completely cancelled. However, he gets earned income credit to the tune of $323.

Therefore, he gets $323 back with nothing paid in.

(This does not include state income tax. For most states, this taxpayer would probably have a net balance of $0 in taxes.)

the top 50% of wage earners in America pay 96% of the taxes...........

in general

there is a $3200 personal exemption and a $5000 general deduction then you start paying tax.

that is assuming that you are single, aare your own dependant and have no other dependants.

Well, lets think. If he works 40 hours per week at $5.15 an hour for 52 weeks, he'll make $10,712 gross. His share of social security is 7.65% or $819.47. Medicare is 1.5% or $160.68. He also has FICA and so forth withdrawn as wage taxes, but the exact percentages are failing me at the moment. We'll say that he gets $1,200 drawn out for all his wage taxes (probably slightly low).

This leaves him with a total of $9,512 to report as income. As a married person, the standard deduction for 2005 was $10,000. His income is completely cancelled. However, he gets earned income credit to the tune of $323.

Therefore, he gets $323 back with nothing paid in.

(This does not include state income tax. For most states, this taxpayer would probably have a net balance of $0 in taxes.)
fiCA isnt a deduction on your income tax.

fiCA isnt a deduction on your income tax.

Ok, referenced my books. You are correct. Readjustment of figures -

$10,712
Still zero tax ($10,000 standard deduction, 2 x $3,050 personal exemptions)
Earned income credit of $231.

So he made $231.

One more random question about income taxes...

What is the average amount of income tax paid among the 10% bracket? What are the average deductions?

One more random question about income taxes...

What is the average amount of income tax paid among the 10% bracket? What are the average deductions?

I am going to help you out. Go over to IRS's website (http://www.irs.gov), click "More Forms and Publications", click "Form and Instruction Number", and scroll down the list to find 1040-EZ Instructions. That should answer most, if not all, of your questions.

Ok, referenced my books. You are correct. Readjustment of figures -

$10,712
Still zero tax ($10,000 standard deduction, 2 x $3,050 personal exemptions)
Earned income credit of $231.

So he made $231.
yeah but that 10k deduction is for married couples so if he is single the deductions go down by half so its $5k + 3200 or $8200 (i checked this years tax form to see that the personal deduction is now $3200)

to very liberal intent:

if it is a young married couple with one child living in a place like small town newmexico....

the husband would be earning about $8/hour full time, the wife $6/hour half time.
$16k + $6k or $22,000/year

10k standard deduction
9600 personal deduction
22,000-19,600= $2400 in taxable income

2400 X .10 = 240

but the child gets them an additional $1k in tax credit

240-1000= 0 tax paid. (i dont remember if it zeros it out or if they get the difference or a refund of $760)

yeah but that 10k deduction is for married couples so if he is single the deductions go down by half so its $5k + 3200 or $8200 (i checked this years tax form to see that the personal deduction is now $3200)

to very liberal intent:

if it is a young married couple with one child living in a place like small town newmexico....

the husband would be earning about $8/hour full time, the wife $6/hour half time.
$16k + $6k or $22,000/year

10k standard deduction
9600 personal deduction
22,000-19,600= $2400 in taxable income

2400 X .10 = 240

but the child gets them an additional $1k in tax credit

240-1000= 0 tax paid. (i dont remember if it zeros it out or if they get the difference or a refund of $760)

They would get to take the balance to the Additional Child Tax Credit form, which would require a calculation to see how much of it would be refundable. I'm not bored enough to do that today. However, with 1 child, making 22,000, a married couple would get $1,759 in earned income credit alone, plus any additional child tax credit that they may/may not get.

Oh! Sorry, I forgot to mention...United States.

Well, that was silly seeing as this is a British hosted, international form, run by an Australian.

They would get to take the balance to the Additional Child Tax Credit form, which would require a calculation to see how much of it would be refundable. I'm not bored enough to do that today. However, with 1 child, making 22,000, a married couple would get $1,759 in earned income credit alone, plus any additional child tax credit that they may/may not get.
oh thats right, i forgot about the EIC.

kids vastly complicate the question of "at what income level do you start paying income tax".

oh thats right, i forgot about the EIC.

kids vastly complicate the question of "at what income level do you start paying income tax".

Quite so, but I find it unlikely for anyone 25 or older claiming themselves and making minimum wage at only one full time job to pay anything at all in income tax, regardless of marital status or dependent status.