1. Taxes: How it works First we need an income http://www.bls.gov/oes/current/oes_nat.htmneed an income http://www.bls.gov/oes/current/oes_nat.htm Write down this career and your income.

2. Taxes: How it works (1) Subtract away your FICA, use 9% of your gross. (2) Subtract away your standard deduction. Start with your gross income (Example: $119,726) Example: 119,726(.91) =108,950 Example: 108,950 - 8950 100,000 Yes, I am making this easy on myself!

3. Married income of 100,000 would pay this tax: = (10%)(17,400) + (15%)(70,700-17,400) + (25%)(100,000-70,700) = $17,060 is the total federal income tax. This Net Income Is Taxed

4. Taxes: How it works (1)100,000 – 17,060 = $82,940 is taxed by Oregon. (2)942 +.09(82,940) (3)$8,406.60 is the Oregon tax.

5. Taxes: How it Works Your total income after taxes is 17,060 + 8,406 = 74,534 This person paid 21.3% of your original income of $119,726 in state and federal taxes. This household paid 14% in federal taxes.