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Revision as of 01:51, 23 September 2024
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Well, some taxpayers out there might not view the question kindly, thinking I am biased because I am probably asking from a tax practitioner point of view with the aim to change your way of imagining.
Marginal tax rate could be the rate of tax as opposed to on your last (or highest) quantity income. In the described example, the individual is being taxed with a marginal tax rate of 25% with taxable income of $45,000. This might mean she is paying 25% on her last dollars of income (more than $33,950).
Moreover, foreign source income is for services performed away from the U.S. If one resides abroad and works well with a company abroad, services performed for that company (work) while traveling on business in the U.S. is somewhat recognized U.S. source income, and still is not be subject to exclusion or foreign tax credits. Additionally, passive income from a U.S. source, such as interest, dividends, & capital gains from U.S. securities, or U.S. property rental income, one more not governed by exclusion.
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