History Of Your Federal Income Tax: Difference between revisions

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Revision as of 05:46, 22 September 2024

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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 causes you to under the marginal tax rate of 25%. Therefore the money it will save you on personal exemption is $912.50 (calculation is simple: $3650 multiplied by 25%). For the spouse, which are multiplied by two so you save $1825.

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