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53bears
New Member

Wondering why I increased my income by only $2000. but got taxed $231. last year no tax. seems a high tax on $2000.

 
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WillK
Intuit Alumni

Wondering why I increased my income by only $2000. but got taxed $231. last year no tax. seems a high tax on $2000.

Any amount of increase to your wages you will pay your normal federal and state tax rate on. Let's say you are in the 10% federal tax bracket and 6% state tax bracket on $2,000 more income you would be paying about $320 in taxes.

If you didn't have state tax just federal on $2,000 of more income you would be paying $200 in federal taxes.

Now mind you this is very rough math, and doesn't take into consideration the total amount of your income or deductions and credits.

But it isn't unreasonable to pay $200 in taxes on $2,000 of income.
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1 Reply
WillK
Intuit Alumni

Wondering why I increased my income by only $2000. but got taxed $231. last year no tax. seems a high tax on $2000.

Any amount of increase to your wages you will pay your normal federal and state tax rate on. Let's say you are in the 10% federal tax bracket and 6% state tax bracket on $2,000 more income you would be paying about $320 in taxes.

If you didn't have state tax just federal on $2,000 of more income you would be paying $200 in federal taxes.

Now mind you this is very rough math, and doesn't take into consideration the total amount of your income or deductions and credits.

But it isn't unreasonable to pay $200 in taxes on $2,000 of income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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