How to Determine the Tax Bracket for Your Salary Plus Monthly Commission
The Internal Revenue Service (IRS) publishes a revenue procedure every year detailing what the tax brackets are for the upcoming year. These tax brackets are important and apply even when you earn a salary plus commission for work that you do. If you work for someone, your employer withholds an amount of money from your paycheck each week and sends it to the IRS. This money is then held there until you file a tax return. Any amount that is not used to pay taxes for the year is returned to you in the form of a tax refund.
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Instructions
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Open the procedural document to page two to find the tax rate and table.
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Gather all of your income sources. Include income you receive from investments, as well as income you receive from work or any other source.
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Add up all of the income you make for the year.
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Deduct any amounts you are allowed. The IRS allows you to take a standard deduction or itemize your deductions. If you are an employee, you may itemize any business expense you are not reimbursed for by your employer. You may also deduct interest on mortgages up to $1 million for the original loan and interest on up to $100,000 of home equity debt. If you're self-employed, you may deduct an amount of money equal to the total expenses you incur in the course of doing business.
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Check your annual income against the IRS's tax table. You will owe the tax specified in the table. For example, if you're single, and you make over $17,000 but not more than $69,000, then you owe $1,700 plus 15 percent over $17,000.
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