new to tsp- a couple of ?'s please help

[brockbroom17]

hey i am new to tsp and have a couple of ?'s.

1. Question about taxes. Lets say my income is 45,000 for this year. If I put 15,000 into tsp, could i get into the lower tax bracket of <32,000???

2. I've been changing the percent of my contributions over the year. HOw do I figure out how much money i've put into tsp and how do I time it right so that I put in the full amount and still get my 5 percent the whole time?

3. Do they calculate the 15,000 you can put into tsp by the governments fiscal year or by the tax year?

thanks!

Sam

 

[Show-me]

Re: new to sp- a couple of ?'s please help

Sure you can lower your tax bracket but you have to use payroll deduction and can not exceed 90% of you paycheck.

It is by tax year.

You need to look at your earnings statement and add up your contributions then take the remainder and divide it by the number and pay periods left.

 

[tsptalk]

Re: new to sp- a couple of ?'s please help

Welcome Brockbroom! Waht show-me said.

 

[James48843]

Re: new to sp- a couple of ?'s please help

Welcome Aboard Brockbroom Sam. nice to have you with us.

 

[nnuut]

Re: new to sp- a couple of ?'s please help

Welcome to the MB brockbroom17!!

 

[brockbroom17]

Tanks. What is payroll deduction??

 

[Show-me]

Good question,TSP will only take contributions through payroll deduction. That mean directly out of your paycheck electronically. TSP is almost all electronic, that is part of the master plan to keep cost down.

 

[Show-me]

Keep'em coming, we are here to help.

 

[brockbroom17]

does the 5 percent matching by the gov go towards the 15k?

Also, i see on my pay statements it has total deductions for the year, which is like 12 k. does that get taken off my taxable income? Also is there any deductions I get just for filing single? Trying to figure this stuff out. I hear that after 32k you get taxed another 4k on top of the latter 10%@8k, 15up to 32K% and 25% after that.

thanks

 

[Show-me]

does the 5 percent matching by the gov go towards the 15k?

Also, i see on my pay statements it has total deductions for the year, which is like 12 k. does that get taken off my taxable income? Also is there any deductions I get just for filing single? Trying to figure this stuff out. I hear that after 32k you get taxed another 4k on top of the latter 10%@8k, 15up to 32K% and 25% after that.

thanks

No, just your contributions are counted toward the 15k.

Yes, it is taken off of your taxable income at tax time.

You would get the standard deduction or any that you itemize which ever is greater.

I don't know about the tax brackets.