But what about tax brackets.
Let's say If I earned 100,000$ in 2020 of which 50,000$ was earned as non-resident and 50,000$ as a resident.
In this case,
Does the brackets are applied individually on each income portion?
The current tax brackets are
- 22% for incomes over $40,125 ($80,250 for married couples filing jointly);
- 12% for incomes over $9,875 ($19,750 for married couples filing jointly).
So does that mean I pay
Non - resident tax = 0.1 * (9875) + 0.12 * (40125 - 9875) + 0.22* (50000-40125) =6790
Resident income = 0.1 * (9875) + 0.12 * (40125 - 9875) + 0.22* (50000-40125) = 6790
