What I want to do in this video is try to get a good understanding of how the US federal income tax rate schedule works and also what people mean when they say tax brackets or what does it mean to be in a tax bracket. So let's say that I make a hundred thousand dollars and I'm single and I'm not going to go into the deductions or anything fancy like that. Let's say I make one hundred thousand dollars in a given year and these numbers will change as the tax code changes, but the general idea is the same thing, although the details might change. So the way the rate schedule works is that the first 8350 of my hundred thousand dollars will be taxed at 10%. So the first eight thousand three hundred fifty dollars will be taxed at 10%, so I'll be paying what? That's pretty easy to calculate. I'll pay eight hundred and thirty-five dollars on that first eight thousand three hundred and fifty dollars. Now the next twenty-five thousand six hundred, or the next from eight thousand three hundred fifty to thirty-three thousand nine hundred and fifty, that will be taxed at 15 percent. That will be taxed at 15 percent. So this amount right over here I will have to pay fifteen percent on that. And so that the difference between thirty-three thousand nine hundred fifty and eight thousand three hundred fifty is twenty-six thousand twenty-five thousand six hundred. So it's twenty-five thousand six hundred times fifteen percent. I'll calculate it all at the end using a calculator. Now the next forty-eight thousand three hundred dollars is going to be taxed at twenty-five percent. Let me draw that over here. So the next, this next slug right over here is going to be taxed at 25 percent. So this...
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Video instructions and help with filling out and completing How Form 1120 Schedule M 3 Subsidiary
