Calculating an estimate for how much taxes are due for the year 2014 starts at the New York State Department of Taxation and Finance website, which offers tax tables for free from their website: http://www.tax.ny.gov/pit/file/tax_tables.htm.
Residents much download the correct tax table for their gross earnings and taxable incomes. For example, full-time residents who made $104,600 or less and have taxable income less than $65,000 for the year of 2014 in New York State have different tax rates than those who have greater than $65,000 in taxable income.
The website provides estimates based on taxable income rather than percentages. For residents with less than $65,000 in taxable income, the rate falls between 5% and 6%, with the rates skewing toward the higher end closer to the $65,000 mark. Residents should withhold at least 5% of their income to afford taxes for the previous past year every April. However, making payments closer to 6% will create a safe buffer zone.
Below is a short example of taxable income and the 2014 New York State taxes due.
<li>$10,000 in table income pays $410</li>
<li>$30,000 in table income pays $1,607</li>
<li>$45,000 in table income pays $2,574</li>
<li>$50,000 in table income pays $2,897</li>
<li>$60,000 in table income pays $3,542</li>
Every $50 increase leads to a tax increase.
There are differences in tax rates if you file as single, head of household or married. For example, a person who makes between $40,000 and $40,050 per year will pay $2,2,52 if she’s single, $1,930 when filing with a spouse and $2,086 when filing as head of household.
New York City residents also incur additional taxes. These tax rates are broken down between people who make lower than $65,000 per year and people who make more than $65,000 in taxable income.
Note that tax rates vary by year. If you’re calculating taxes for a return prior to 2014, for example, this change the amount of taxes do. Similarly, future tax rates may raise or lower how much you owe New York State in tax fees.
This method for calculation only applies t residents filing income tax from another source and not for business or people who are self employed — those individuals will have different tax rates.
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Author: Jay White
I started Dumb Little Man so great authors, writers and bloggers could share their life "hacks" and tips for success with everyone. I hope you find something you like!