Just a Holiday reminder

Since nobody can seem to get it right, here it is:

For assumptions let’s say this person is single working full time in California and claiming no deductions.

Gross income: 20,800 FIT: 2,298.50 SIT: 327.91 FICA: 1,591.2 FUTA: 42 SUTA: 238 Local (guess): 208

Total tax burden: 4,705.61 Effective tax rate: 22.62% Effective hourly wage: 7.74/hr

Gift price w/ tax: 31.80 Hours to purchase gift: 4.11

That is the worst case scenario. Normally one can claim deductions and significantly reduce their tax burden. Since I am not an accountant, I’m not going to try to calculate anything but the worst case. Point is that assuming 30% in tax for someone making 10/hr is waaaay off, and it would be worth while to learn how to properly calculate tax. This is /r/PovertyFinance after all.

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