Paying correct percentage of taxable income?
Hi all,
We are filing a joint return with both wage and non-employee compensation (total income is approximately 50% each). After all deductions, our taxable income is in the $23,200 to $94,300 tax bracket and the federal taxes calculated are nearly 23% of the taxable income. Does that sound correct?
I should mention that about half of the taxes calculated are due to self-employment. In other words, if all income was just from wages, then the calculated tax would be more like 12%.
Thanks for any sanity checks you can provide.