Tax news, personal finance, and more!
The tax filing deadline to e-file a 2014 tax return is April 15, 2015. After this date, your tax return will be considered late.
If you don’t file your 2014 taxes by the April 15th deadline, you may have to pay late penalties if you aren’t all squared away with the IRS.
Luckily, RapidTax helps make filing your taxes easy so that you can file before the tax deadline.
You don’t need to worry about paying estimated taxes if all your income comes from being an employee. Your employer is required to withhold taxes from every paycheck.
You only need to pay estimated taxes if you have earnings that are not subject to withholding. This income can include
Estimated taxes include both income taxes and self-employment tax, as well as other taxes. Continue reading “How and When to Pay Estimated Taxes”
California is one of the highest taxing states in the country. So it makes sense for Californians to plan ahead and see how much money the state is going to take instead of getting surprised by a big bill next winter.
California’s marginal tax rates for 2013 are as follows. Note that different rates apply to those filing as single and to married couples filing a joint return.
|
Income Bracket |
Tax Rate |
| $0 – $7,123 | 1% |
| $7,124 – $16,889 | 2% |
| $16,890 – $26,656 | 4% |
| $26,657 – $37,004 | 6% |
| $37,005 – $46,765 | 8% |
| $46,766 – $999,999 | 9.3% |
| $1,000,000+ | 10.3% |
|
Income Bracket |
Tax Rate |
| $0 – $14,427 | 1% |
| $14,248 – $33,779 | 2% |
| $33,780 – $53,313 | 4% |
| $53,314 – $74,009 | 6% |
| $74,010 – $93,531 | 8% |
| $93,532 – $1,999,999 | 9.3% |
| $2,000,000+ | 10.3% |
Like the federal system, each of these rates applies only to your income that falls within that specific bracket. Your top rate does not apply to all of your income.
For example, if you make $40,000, you only have to pay 8% on the $2,995 that falls above that bracket’s $37,005 threshold. You would pay 1% on your first $7,123 of income, 2% on the next $9,765, etc.
California has some of the most complicated state taxes in the nation. Thankfully, when you file with RapidTax, all this math is taken care of for you automatically.
Photo via Mike Behnken on Flickr.
