Federal Form 1040-WJ

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     Typical Taxpayer Scenarios 
Line Income:  A   B   C 
1 Wages, salaries, tips, etc. from Form W-2  $    26,500  $    75,000  $  240,000
2 Taxable Interest and dividend Income  $        600  $      1,165  $      5,700
3 Alimony Received      
4 Retirement Income (pensions, annuities, IRA)      
5 Unemployment Compensation    $        900  
6 Social Security Benefits  $      6,000    
         
7 Class 1 Income -  Lines 1 through 6  $    33,100  $    77,065  $  245,700
8 Business income or (loss)       $    (4,400)
9 Capital gain or (loss)    $    (1,200)  $      4,900
10 Farm income or (loss)      
11 Rental income, royalties, partnerships, trusts      
12 Other income      $      2,000
         
13 Class 2 total income - Lines 8 through 12  $           -    $    (1,200)  $      2,500
14 Total Income - combine Line 7 and Line 13  $    33,100  $    75,865  $  248,200
         
  Deductions:      
15 State, local and property taxes paid  $          85  $      4,800  $      8,500
16 Charitable Contributions  $        150  $        255  $      3,250
17 Home mortgage interest paid  $           -    $      8,400  $    14,600
18 Enter 5% of line 14  $      1,655  $      3,793  $    12,410
19 Allowable home mortgage deduction
Subtract line 18 from line 17 
 $           -    $      4,607  $      2,190
20 Misc itemized deductions  $        250  $        365  $    13,100
21 Enter 5% of line 14  $      1,655  $      3,793  $    12,410
22 Allowable misc deductions
subtract line 21 from line 20
 $           -    $           -    $        690
23 Combine lines 15 16 19 22
This is your allowable deduction
 $        235  $      9,662  $    14,630
         
  Tax Calculation:      
24 Class 1 income from Line 7  $    33,100  $    77,065  $  245,700
25 Class 2 income from Line 13  $           -    $    (1,200)  $      2,500
26 Total Income from Line 14  $    33,100  $    75,865  $  248,200
27 Tier 1 Taxable Income  $    33,100  $    50,000  $    50,000
28 Tier 2 Taxable Income  $           -    $    25,865  $  198,200
29 Tier 1 Tax - Enter 15% of line 27  $      4,965  $      7,500  $      7,500
30 Tier 2 Tax - Enter 20% of line 28  $           -    $      5,173  $    39,640
31 Combine lines 29 and 30
This is your total tax bill
 $      4,965  $    12,673  $    47,140
  (Percent of taxes to total income) 15% 17% 19%