00:02
All right, so we're looking at marginal tax rates.
00:05
And we're looking at sarah, who's earned $67 ,400 for the year, and she's going to file separately.
00:16
She's married filing separately.
00:18
So that's her tax status.
00:20
And then, so we're going to do this.
00:23
So the way this works is you look at where your income falls on this scale here, and she falls right between these two values, the 36 ,250 and 73 ,000.
00:35
And then you look at this, 25%.
00:39
Now she doesn't owe 25 % on everything here.
00:43
She only pays 25 % on the difference of these brackets.
00:49
And so how it works, that's how a marginal tax bracket works.
00:51
It's you're not paid one rate on every part of your income.
00:55
Your income is broken up into, well, brackets.
00:58
So the first $8 ,925, you have 10 % of it.
01:03
So i did is i took 8925 times 10%.
01:08
Let's write this, $892 .50.
01:12
So she owes this much.
01:14
I'll put a little star here.
01:16
She owes that.
01:17
And then up to the 36 ,000, she was 15%.
01:20
But it's actually this amount that she pays 15 % on.
01:24
The difference of those two values, 27 ,325...