What percent shoul i deduct from my income for taxes
Estate Planning Attorney
You should get with a CPA, not an attorney, on this. The amount you owe will depend on numerous factors, including your marital status, the source of the income, available deductions (mortgage interest, charitable contributions, medical expenses...) and too many more factors to list here. The 2010 tax brackets are posted on the IRS website. I would either get with a CPA to discuss this or run a hypothetical return by plugging your information into a 1040 and calculating the tax due.
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Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits.
No one pays federal income tax on more than 85 percent of his or her Social Security benefits. If you:
A.) file a federal tax return as an "individual" and your combined income* is
1.) between $25,000 and $34,000, then you may have to pay income tax on up to 50 percent of your benefits.
2.) more than $34,000, up to 85 percent of your benefits may be taxable.
B.) file a joint return, and you and your spouse have a combined income* that is
1.) between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits
2.) more than $44,000, up to 85 percent of your benefits may be taxable.
C.) are married and file a separate tax return, you probably will pay taxes on your benefits.
Each January you will receive a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received in the previous year. You can use this Benefit Statement when you complete your federal income tax return to find out if your benefits are subject to tax.
If you do have to pay taxes on your Social Security benefits, you can make quarterly estimated tax payments to the I.R.S. or choose to have federal taxes withheld from your benefits.
You do not present enough facts to answer this question. Go to a local tax professional and have them prepare a tax projection for you and calculate what you should withhold.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
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