#1 & #2) question: Are we assuming that "saving" in whatever form is a part of expenses? Or shouldn't there be a separate sub-question/sub category there? Because in reality you wouldn't want the budget to balance if it did not include savings somewhere.
#14) Doesn't the answer here depend on whether you've moved upward or downward?
Quote:
14) If you move from one tax bracket to another, does all of your income get taxed at the higher income tax rate?
14a) Do you know what determines what tax bracket you are in (federal tax bracket)?
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And doesn't this depend on the ending tax bracket for Fed/State versus the reality of witholdings which are taken from salary as you earn, or taken from other retirement benefits, or whatever defines the taxable income for the year?
You could actually be earning income at a very high rate at the beginning of the year, lose a job, or take numerous pay cuts and end up in the 10% bracket overall. Or have twins and increase deductions and lower tax bracket
; or have twins come of age and go out into the world and lose your grown-up deductions.
My understanding is that if you encroach into 15%, 25, 28, 33, 35... that you are only paying the additional amounts on the dollars that have encroached. But all of this is built into the tax tables.... which which defines the amount paid. You don't really pay on the whole, just the accumulation of lower to higher brackets; but this is built into the tables, which defines the specific amount owed. It's sort of hidden. Hopefully this makes sense.
LOL -- snafu -- that's funny, but so true
