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the man work at a car dealer ship and he get a bonus of 19000 and they want to know what he is % of tax rate is on this
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are we guessing? without seeing his overall tax picture, that's all anyone here could do.
What tax bracket does he land in?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Probably a spiff.
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"They" meaning the dealership?
"They" meaning your client?
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contains some discussion of spiffs.
You got me thinking @BobKamman
The more I know the more I don’t know.
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contains some discussion of spiffs.
You got me thinking @BobKamman
EDIT: Sorry for the duplicate post. Forum has been wonky for me today.
The more I know the more I don’t know.
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it was bonus for all the cars he sold and he made 19000 and he got it on a 1099-misc form and when i got it done. The people wanted to know what tax rate were they being taxed at, well i told them i would ask around and see if i could get some idea, I said that they needed to put 30% of the amount in to a saving account and or put it away so that they could have money set a side to pay the taxes on it
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@bearlywalkin wrote:
it was bonus for all the cars he sold
Was the money from the dealership or was it from the manufacturer of the vehicles?
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@bearlywalkin wrote:The people wanted to know what tax rate were they being taxed at, well i told them i would ask around and see if i could get some idea,
The program has reports that show the federal tax bracket: Tax History Report, Tax Summary Report But the federal tax bracket doesn't take into account any other taxes your client may be subject to, like self-employment tax.
If you're preparing returns professionally, you really should know how to determine the tax rate. You don't ask around and see if you can get some idea.
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"The people wanted to know what tax rate were they being taxed at, well i told them i would ask around and see if i could get some idea, I said that they needed to put 30% of the amount in to a saving account and or put it away so that they could have money set a side to pay the taxes on it"
As you likely know, the tax brackets are Additive. There is no fixed tax on a payment, whether that is commission, sales of stock, paychecks, rent, or any other income considered taxable ordinary income.
You could have one sales person with $20,000 payroll who gets a $20,000 bonus.
You can have another sales person with $200,000 payroll who gets a $20,000 bonus.
You can have another sales person with $40,000 payroll, a spouse with $40,000 payroll, some rental income, and also gets a $20,000 bonus.
Each of these people have different tax rates because we work off of tax brackets, not flat tax tables. You know this because you see it every time your work on a Form 1040.
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