What tax bracket are you in? How much to withold? What is a FICA? Do I pay estimated taxes? How bad are the penalties? What are all the tax forms? What is a alternative minimum tax? Can I get audited? When to start tax planning?

When people ask you what tax bracket you are in, they are asking for your marginal tax rate. Here in the US, our tax structure is centered around marginal tax rates. In other words, not every dollar you earn is taxed at the same rate. Your taxable income (AGI), after you have made all your tax deductions, will fall into one bracket.

Marginal taxes work like this: Say you have an adjusted gross income is $85,000 in 2003. The first $7,000 of your money is only taxed at 10 percent, then dollars $7,001 through $28,400 are taxed at 15 percent; dollars $28,401 through $68,800 are taxed at 25 percent; and dollars $68,801 through $143,500 are taxed at 28 percent. In your case, only dollars $68,801 through $85,000 would be taxed at 28 percent.

What about state income taxes?
Ah yes, we can't forget about the state income taxes. State income taxes vary on which state you are in. You should probably check your local state's websites for updated tax rates. State income tax rates are used to help determine an effective combined rate. This rate is used to tax your investments.

Jan 31		If you haven't paid your 4th quarter estimated tax , you can opt to file last year's return by Jan 31.
Feb 17		If you claimed exemption from withholding last year, you need to file a new W-4 to continue the exemption.
Apr 15		Taxes are Due
Dec 31		Last day to setup most self-employed retirement accounts.