Quote:
Originally Posted by jaydorn
I'm confused by the Health Care Premium... is that $200/year or $200/month if you're over the $50k mark?
|
It's $200/year and it's very confusing the calculations.
For example in the $50K-$70K bracket, it's 5% on income over $50K and capped at $200.
That means if your income is $54,000 you pay the max levy (4,000X5%=200) in that bracket.
So income between $54,001 - $69,999 or about $16K you pay no levy, is that right?
And this scenario repeats in every bracket. You only pay the levy in the first few Ks and then are exempted.
This is a highly progressive system that for the first few Ks in your bracket, you are taxed at (5%, 15% or 25%).
For example the first few Ks over the 130K bracket, you'll be taxed at 65.5% (Feb 29%, AB 11.5%, Levy 25%=65.5%).
For the 90K-110K bracket, the first few Ks over 90K you'll be taxed at 51% (Feb 26%, AB 10%, Levy 15%=51%).
You'll have to do your tax planning well to make sure this doesn't happen to you.