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Eric_L · 01-22-2004, 11:28 PM

Here is a link:

http://money.cnn.com/pf/101/lessons/18/page2.html

THe forst $7,000 will be taxed at 10%, the next $21,400 will be taxed at 15%, the remaining $1600 will be taxed at 25%.

You likely will also take advantage of the standard deduction, which should lower your taxable income by several thousand dollars. That places you squarely in the 15% tax bracket. You also have social security taxes to pay and your benefits.

I would also STRONGLY encourage you to copntribute to your 401k since it will reduce your taxes by 15 cents per dollar and give you a huge head start in life. Even if it is only $50/month it is a good habit to start now.

Look for your paychech to be about 75%-80% of what you earned. (Think of it as giving all of your money to the IRS until mid-March - it would cost you the same at the end of the year) Then thank heaven for tax cuts! Especially once you start earning more and have a family to support. Only a year ago the taxes started at 15% instead of 10%, and it was once much higher.

01-22-2004, 11:28 PM	#2 of 4
Eric_L Member Join Date: Nov 2002 Local Time: 08:31 AM Local Date: 11-20-2008 Posts: 1,780	Here is a link: http://money.cnn.com/pf/101/lessons/18/page2.html THe forst $7,000 will be taxed at 10%, the next $21,400 will be taxed at 15%, the remaining $1600 will be taxed at 25%. You likely will also take advantage of the standard deduction, which should lower your taxable income by several thousand dollars. That places you squarely in the 15% tax bracket. You also have social security taxes to pay and your benefits. I would also STRONGLY encourage you to copntribute to your 401k since it will reduce your taxes by 15 cents per dollar and give you a huge head start in life. Even if it is only $50/month it is a good habit to start now. Look for your paychech to be about 75%-80% of what you earned. (Think of it as giving all of your money to the IRS until mid-March - it would cost you the same at the end of the year) Then thank heaven for tax cuts! Especially once you start earning more and have a family to support. Only a year ago the taxes started at 15% instead of 10%, and it was once much higher.