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Revision as of 02:36, 22 September 2024
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Marginal tax rate is the rate of tax as opposed to on your last (or highest) associated with income. In the earlier described example, the person is being taxed with a marginal tax rate of 25% with taxable income of $45,000. This might mean she or he is paying 25% federal tax on her last dollars of income (more than $33,950).
Determine the rate that require to pay on the taxable involving the bond income. Use last year's tax rate, unless your income has changed substantially. Where case, cause estimate what your rate will end up being. Suppose that you expect to have the 25% rate, anyone are calculating the rate for a Treasury union. Since Treasury bonds are exempt from local and state taxes, your taxable income rate on these bonds is 25%.
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