You say:I've been saving 30% of my checks which has accrued $8,804.
Turns out, I only needed to save $3,401.
What is the percent of my checks I should save?
Between May and December 2020You say:
I've been saving 30% of my checks which has accrued $8,804.
- in what time span?
Thank you for responding.I am reluctant to even try answering this question because I suspect that it is so incomplete that any answer will be misleading.
We don’t know whether what was saved was the total amount of three checks out of ten or 30% of the amount of each check. That makes a difference if the checks were for different amounts. I suspect that it was 30% of the amount of each check, but the original post says “checks“ rather than “amount of each check.”
Then it says “should have saved“ $3401, which is very close to one fourth of $8804. It makes me wonder if the numbers are correct. And why is 3401 the correct amount? If this is a question about marginal tax rates, a correct answer will need far more information than we have been given.
Did you deposit these savings in an "interest" earning account?Thank you for responding.
I received a check every 2 weeks beginning in May. These checks were not taxed, so I set aside 30% of each check. The savings (combined from all checks since May) is now $8804, but, fortunately, I only owe $3401 in taxes. What can I lower the savings percent to?
The problem is that, with tax brackets, whatever percentage you save is likely to be wrong because the marginal rate changes as income goes over certain thresholds, which changes the average tax due.Thank you for responding.
I received a check every 2 weeks beginning in May. These checks were not taxed, so I set aside 30% of each check. The savings (combined from all checks since May) is now $8804, but, fortunately, I only owe $3401 in taxes. What can I lower the savings percent to?
Thank you. This is exactly what I was looking for.I will answer this as a pure math question. I am assuming that each check was the same amount.
Whenever you do not see how to do a problem you should work with friendlier numbers. Suppose you just need to save $4402 which is half of what you did save. Hopefully you can see that the answer to your question (using these numbers) would be 15%.
That is [math]\dfrac{4402}{8804}30% = \dfrac{1}{2}30[/math]% = 15%
Just do the same with your numbers. [math]\dfrac{3401}{8804}30[/math]% = 11.589%