Difference between revisions of "A Excellent Taxes - Part 1"
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Revision as of 06:29, 11 November 2024
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of income from someone will be in a high tax bracket to a person who is in a lower tax group. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't have other taxable income. Normally, the other body's either your spouse or common-law spouse, but it can also be your children. Whenever it is easy to transfer income to someone in a lower tax bracket, it should be done. If develop and nurture between tax rates is 20% then your family will save $200 for every $1,000 transferred for the "lower rate" partner.
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If you claim 5 personal exemptions, your taxable income is reduced another $15 thousand to $23,500. Your income tax bill is huge approximately 3,000 dollars.
This provides us a combined total of $110,901, our itemized deductions of $19,349 and exemptions of $14,600 stay the same, giving us an overall total taxable income of $76,952.
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