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?

Comments for Income Tax Calculation

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Dec 11, 2017
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starstarstarstarstar 		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 practice 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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Jan 20, 2024
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starstarstarstarstar 		Contract Employment and Taxes
by: BB

As a contract employee, there are several tax-saving opportunities you can explore:

Business Expenses: Keep track of any business-related expenses that you can deduct from your income.
Professional Tax Consultation: Consult with a tax professional who can provide personalized advice based on your specific situation.
Invest in Tax-Saving Instruments: Explore investment options like ELSS, PPF, or NPS that offer tax benefits.
Health Insurance Premiums: If applicable, consider investing in a health insurance plan and claim deductions under Section 80D.
Maximize HRA Benefits: If you receive HRA, ensure you provide accurate rent receipts to claim House Rent Allowance benefits.

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