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Revision as of 07:32, 2 October 2024
One more week until Tax xnxx 24-hour period. Have you filed yours yet? I haven't (probably should aboard that, actually), any time I read in USA Today that roughly 47% of Americans won't even need to worry about paying federal income taxes, I start to wonder if I would even bother. Oh sure, there's the threat of prison time for tax evasion, but really, what's the point if half the damn country isn't going to up and log off scot-free?
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Another angle to consider: suppose little business takes a loss for the year. As a C Corp it takes no tax on the loss, however there additionally no flow-through to the shareholders it seems an S Corp. Losing will not help your personal personal tax return at almost all. A loss from an S Corp will reduce taxable income, provided there is other taxable income to overcome. If not, then there is no tax due.
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Because belonging to the increasing tax rate of upper brackets, a reduction of taxable income within the higher bracket saves you more tax than gonna do it . reduction at a very lower clump. So let's compare the tax saving of contributing $1000 by a single person with a $30,000 income with that of a single person with a $100,000.
The 'payroll' tax applies at a hard percentage of your working income - no brackets. With regard to employee, obtain a 6.2% of your working income for Social Security (only up to $106,800 income) and just 1.45% of it for Medicare (no limit). Together they take much more 7.65% of the income. There is no tax threshold (or tax free) amount of income for this system.
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