As a soon-to-be graduate, one of the most important things you can do is to familiarize yourself with taxes. Knowing how much you will be paying in taxes is essential for budgeting and planning your finances. It will also help you determine your monthly expenses, allowances, and investments.
Factors that Affect Your Taxes
Before we dive into calculating your taxes, it's essential to understand the factors that will affect your tax payments. These include your income, filing status, deductions, and exemptions. For the purpose of this blog post, we will focus on your income and filing status.
Calculating Your Taxes for 2024
Based on the information provided, your salary will be $102,000 per year or $8,500 per month. This amount will be taxed in the state of Oklahoma. To determine how much you will pay in taxes, you will need to consider your filing status.
Your filing status will determine which tax bracket you fall under, and ultimately, how much you will pay in taxes. As a single individual, your filing status will likely be "single." As a single individual, your income will be taxed as follows: - Up to $9,950: 0% - $9,951 to $40,525: 12% - $40,526 to $86,375: 22% - $86,376 to $164,925: 24% - $164,926 to $209,425: 32% - $209,426 to $523,600: 35% - Over $523,600: 37% Based on your salary of $102,000, your tax rate will be 24%. This means you will pay $24,480 in taxes for the year 2024.
In addition to federal taxes, you will also need to pay state taxes. The state of Oklahoma has a flat tax rate of 5%. This means you will pay an additional $5,100 in state taxes for the year 2024.
Total Tax Payment for 2024
Adding your federal and state taxes together, you will pay a total of $29,580 in taxes for the year 2024. This means that your monthly tax payment will be approximately $2,465.
Considering the Following Year
It's important to note that tax rates can change from year to year, so the amount you pay in taxes for the following year may vary. However, for the purpose of this blog post, we will assume that your income and filing status will remain the same. Based on this assumption, your tax rate for the year 2025 will also be 24%. This means you will pay the same amount in federal taxes, totaling $24,480. However, your state taxes may vary depending on any changes in the state tax rate.
Consulting with a Tax Advisor
While this calculation gives you a general idea of how much you will pay in taxes, it's essential to consult with a tax advisor for a more accurate calculation. A tax advisor can also help you identify potential deductions and exemptions that may lower your tax payment.
In conclusion, as a new graduate starting a job in June 2024 with a salary of $102,000, you can expect to pay approximately $29,580 in taxes for the year 2024. However, it's always best to consult with a tax advisor for a more accurate calculation and to ensure that you are taking advantage of any deductions and exemptions available to you. Knowing how much you will pay in taxes will help you budget and plan your finances for a successful future.