Income Tax Calculation

Income Tax Calculation

Income Tax Calculation

If Harry made $16,000 last year at his job and he paid 11% in income tax, how much was his tax?

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Dec 11, 2017
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Tax on Income
by: Stephanie

Hello. If Harry made $16,000 last year at his job and he paid 11% in income tax, and he is Single with no dependents or any other deductions, he would be showing the following:

Wages 16,000
Federal Tax Withheld 1,760 (16000 x .11)

Standard Deduction 6,350
Personal Exemption 4,050

Taxable Income would be $5,600 (16,000-6,350-4,050)

Regular Tax Owed would have been $560 for the year.

Since $1,760 was withheld, he would ultimately receive a refund of $1,200.

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IncomeTax Calculation for IT Contract Employee

by raju
(bangalore)

I joined IT MNC company on Contract of 6 months and they are paying monthly fixed hourly salary in lumsum after TDS.
They paid me ex-gratia/Bonus amount at the time of joining after deducting the TDS.

For the Permanent employee HRA/Medical/Travel Allowance and other rebates are available. Like that I am looking for a contract employee can take the benefit for the tax calculation.

Do anyone have any best practise of the tax calculation for the contract employees to take the full advantage to reduce the tax ( 3 / 6 month contract).

Regards
raj

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