How can i tell for sure what tax bracket I was in for the taxes done in 2019. It does not show it n my tax return. Did it Married / jointly. I may withdraw some money from my 401k in 2020 or 2021 and I want to know if it will put me in a higher tax bracket.
A Hunch
Favorite Answer
You aren't in "a single" tax bracket.
The US has a progressive tax system.
You are taxed at the different tax brackets based on the income:
Tax rate Married filing jointly or qualifying widow
10% $0 to $19,400
12% $19,401 to $78,950
22% $78,951 to $168,400
24% $168,401 to $321,450
32% $321,451 to $408,200
35% $408,201 to $612,350
37% $612,351 or more
if you make $100000
$19400 is taxed at 10% = 1940
$59549 (this is the amount between $19401 to $78950) taxed at 12% = 7145.88
$21049 (this is the amount between $78951 to $100000) taxed at 22% = 4630.78
Total taxes = $13717 (taxes are rounded)
Amy
If you google "tax brackets 2020" you'll find many sites with the table of bracket vs. income. It sounds like what you really want to know is how much more income you can take before hitting the next bracket.
This one has a calculator where you type in your taxable income:
http://www.moneychimp.com/features/tax_brackets.htm
Note that TAXABLE income is your total income minus deductions. And you should also leave out long-term capital gains and separately evaluate the effect on their tax rate.
Christin K
Yes it absolutely WILL raise your income and it may indeed put you in a higher bracket when you withdraw money from your 401K. You will immediately pay income tax on the money you take out and whatever sum you withdraw will be added to your gross income for both federal AND state returns.
You can find tax tables online for most years. No, your return doesn't show your 'bracket'. But the bracket isn't the biggest issue. The gross income from all sources is a bigger issue for you.
Not to mention the penalty for early withdrawal from your 401K if you're not at least 59-1/2 years old.
Best check with your 401K manager and see what other penalties you may incur before making that withdrawal, such as not being able to contribute catch up funds, or state early-withdrawal penalties.
mercedes
Download the instruction book and check.
Slickterp
Look at what the brackets are and then look at your AGI and see what bracket it falls in. Only the money above the bracket line is taxed at the higher amount, not all your money.