Welcome Guest. Sign in or Signup

4 Answers

How much federal tax will I pay on an additional $16,000 in income ?

Asked by: megan 1981 views YA Discussion

I just cashed in an insurance policy worth $ 16,000 and want to know how much additional federal tax will I have to pay on this money.This will put me in the $ 60,000 tax bracket.
The $ 16,000 is what we paid in vs.a $ 21,000 plus payout. We will be filing married jointly and live in Missouri, with little deductions other than the standards.

4 Answers

  1. jen777hen on Aug 19, 2011 Reply

    $ 16000 extra income will increase your tax liability by at least $ 1600. However, it depends on not only your AGI but if you itemize or use the standard deduction (and your filing status). Your exemptions will also decrease your taxable income. After all that it depends on how many nonrefundable credits (decrease your tax liability dollar for dollar) you have and if you have any refundable credits (acts like payments). Hope that helps.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes

  2. the tax lady on Aug 19, 2011 Reply

    Single or married?
    How much of the money was in excess of the total premiums paid?

    If single, plan on 25%. Otherwise, see 1040ES at irs.gov.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes

  3. dizneygeek on Aug 19, 2011 Reply

    IT DEPENDS! Your filing status? Deductions? State of residence? Sorry but there’s not enough info to answer

    The typical answer for most tax questions is “IT DEPENDS”

    0 Votes Thumb up 0 Votes Thumb down 0 Votes

  4. tro on Aug 19, 2011 Reply

    not all of the cash pay out should be taxable, there is some amount that you paid for it, that would be refund of your contribution, you probably paid on the interest it generated each year

    0 Votes Thumb up 0 Votes Thumb down 0 Votes

Your Reply