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how much fed. income taxes are owed on $120000 living in texas.?

Asked by: megan 1629 views YA Discussion

I work as a contractor in Kabul, Afghanistan (warzone) and i have claimed exempt for the year but i am close to the exemption limits on travel in the states. if I stay longer in the states i loose the exemption and have to pay the entire year worth of tax on the entire $ 120000..soo the question is how much do i save to pay at the end of the year ? if i make the exemption requirements, i am exempt for the first $ 94000 then responsible for the amount beyond that..any input?

2 Answers

  1. tro on Aug 28, 2012 Reply

    you will have self employment tax as well as income tax which will depend on the number of exemptions and status you claim as well as the standard deduction(or itemized)

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  2. Chas on Aug 28, 2012 Reply

    Texas has no state income tax so it’s all federal.

    If you have no exemption. You owe 13.3% for social security on revenue after expenses. You get a standard deduction of $ 5950 and exemption of $ 3800. You pay federal income taxes on the remainder of 10% up to $ 8700 and 15 to 28% in steps above that. ($ 12,000 approx at $ 85,000 and 28% above $ 85,650 to give you an idea). That assumes you are single.

    Your $ 94,000 exemption? maybe 20 to 25% tax and social security of the amounts above that. I charge for more exact numbers. LOL.

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