Difference between revisions of "Dealing With Tax Problems: Easy As Pie"
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Revision as of 16:44, 30 October 2024
Tax, it's not a dirty four letter word, however for many among us its connotations are far worse than any curse. It's been found that high tax rates generally relate to outstanding social services and standards of just living. Developed countries, whereas the tax rate exceeds 40%, usually have free health care, free education, systems to manage the elderly and a large life expectancy than people lower tax rates.
Remember, an individual exemption of $3650 is not deducted on tax but on your taxable income. Say for example your filing status is 'married filing jointly' with original taxable income of $100,000. This gives you under the marginal tax rate of 25%. Therefore the money you can lay aside on personal exemption is $912.50 (calculation is simple: $3650 multiplied by 25%). For the spouse, that are multiplied by two a person save $1825.
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3) Maybe you opened up an IRA or Roth IRA. Prone to don't possess a retirement plan at work, whatever amount you contribute up with a specific dollar amount could be deducted from your very own income decrease your in taxes.
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