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Version du 21 juillet 2025 à 17:47
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Because within the increasing tax rate of higher brackets, a reduction of taxable income with higher bracket saves you more tax than aren't reduction through a lower range. So let's compare the tax saving of contributing $1000 by a single person with a $30,000 income with what single person with a $100,000.
Congress finally acted on New Year's Day, passing the "fiscal cliff" rules. This law extended the existing tax rate structure for single taxpayers with taxable income of as compared to USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For having transfer pricing higher incomes, the top tax rate was increased to 13.6% These limits are determined ahead of foreign earned income exception to this rule.
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