In the last lesson of this unit, we'll study tax brackets. The short version is that if you make more money, you pay a higher percentage of your income in taxes. That's why the percentage of deductions varied for each individual we've studied in this lesson. If you have a job making $36,630, this puts you in the 15% federal tax bracket, and combining state and local taxes, you might end up having 20% deducted. You then get a raise to $38,400, which moves you up a bracket, and now 24% gets deducted.  

How much would you pay in taxes and how much would you have left before you got a raise?

Answer rating: 100% (QA)

Before the raise Federal tax at 15 on 36630 549450 ... View the full answer