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Latest revision as of 07:16, 5 February 2025

How many amongst us count our tax returns? The truth is, hardly if any. Your market eyes of the government, not all income sources are treated equally. For example, when are usually working for your employer as an employee and you duly pay your taxes at the end of the period. This has been going on for very many years. The amount of taxes paid is noticeable to work same each year (give and take). Therefore, it will be as though all that earned income is being taxed equally each occasion.

Remember, a personal exemption of $3650 isn't 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 you and the spouse, to be multiplied by two and save $1825.

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Defenders of this IRS position would say it pops up to Section 61. The waitress provided a service for me, and I paid for. Compensation for services is taxable. End of story.

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Copyright 2010 by RioneX IP Group LLC. All rights booked. This material may be freely copied and distributed subject to inclusion of this occurence copyright notice, author information and all of the hyperlinks are kept still in effect.

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