What will your typical paycheck look like in 2014 after Uncle Sam's G-men have gotten their dirty, stinking ape paws all over it?
Obviously, the answer to the question of how much of your income will be left over for you after the federal government has snatched a good part it depends upon quite a lot. How much income will you make? How many withholding allowances have you set up with your employer on your IRS Form W-4? How much pre-tax contributions will you be making toward your retirement plan or your health care or dependent care flexible spending accounts? What if you get a raise?
Our tool below is designed to answer those questions for 95% of all Americans. You just need enter the indicated information as it applies for you, and we'll do our best to estimate how much of the money you work hard to earn will still be yours after the federal government has withheld what it wants from your paycheck!
But really, it's not necessarily as quite as simple as that, which is something that we'll discuss in more detail below the tool....
Now that we've given you a sense of how much money you'll have withheld from each of your paychecks in 2014 by the U.S. federal government, we should note that there are some really complicating factors that may come into play during the year depending upon how much you earn.
For example, in 2014, once you have earned over $117,000, you will no longer have the Social Security payroll tax of 6.2% of your income deducted from your paycheck. But then, by the time that happens, you'll have long been paying taxes on your income that are taxed at rates that are at least 10% higher than those paid by over half of all Americans.
Political Calculations is a site that develops, applies and presents both established and cutting edge theory to the topics of investing, business and economics.
Be the first to read Political Calculation's column. Sign up today and receive Townhall.com delivered each morning to your inbox.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom