Dealing With Tax Problems: Easy As Pie

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Aktuelle Version vom 2. Oktober 2024, 20:11 Uhr

A credit is allowed for foreign income taxes paid or accrued. The financial lending is limited to that part of U.S. tax due to foreign source income. It's not at all refundable, but any excess credit can be carried to other years to reduce tax.

But, this can be the shocking straightforward. You pay less tax on the first dollars of earnings plus tax on your private last bucks each month. Let us assume you are single and your taxable income sums up to $45,000 during 12 months 2010. Then you pay federal tax in the rate of 10 percent on customers $8,350 of taxable income. One other 15% imposed on income between $8,350 and $33,950. 25% is charged on income from $33,950 to $45,000.

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