Basic Rundown

A very basic rundown of how your taxes are figured. Most state revenue departments follow this too (including Oregon)

Here in laymen's terms.

All income that can be taxed
minus
direct deductions (also known as above-the-line deductions)
equals
minus
equals
Taxable income which also determines tax bracket.
multiplied 
By tax rate (determined by tax bracket)
equals
tax on you (or your total tax for what you made)
minus
credits, payments, and withholding (like what your employer keeps out of your paycheck) 
equals
Tax to pay (if this is negative it's a refund!)


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