Difference between revisions of "Annual Taxes - Humor In The Drudgery"
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Latest revision as of 07:42, 23 January 2025
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Because from the increasing tax rate of higher brackets, a reduction of taxable income to the higher bracket saves you more tax than the same reduction for any lower bracket. So let's compare the tax saving of contributing $1000 by an individual with a $30,000 income with exactly what a single person with a $100,000.
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Let's change one more fact within example: I give a $100 tip to the waitress, along with the waitress is definitely my modest. If I give her the $100 bill at home, it's clearly a nontaxable offering. Yet if I give her the $100 at her place of employment, the irs transfer pricing says she owes taxes on this method. Why does the venue make a change?
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