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Paying Taxes Can Tax The Best Of Us: Difference between revisions

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Revision as of 10:42, 20 May 2026

The old adage is crime doesn't pay, but one certainly can wonder sometimes about the precision of it given the volume of of politicians that look as if be counterfeiters! Regardless, the fact you are making money from against the law doesn't mean you shouldn't have to pay taxes. Correct. The IRS wants its unfair share of the ill gotten gains!

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For my wife, she was paid $54,187, which she is not taxed on for Social Security or Healthcare. She gets to put 14.82% towards her pension by law, making her federal taxable earnings $46,157.

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Because with the increasing tax rate of higher brackets, a reduction of taxable income at about a higher bracket saves you more tax than the same reduction at a very lower class. So let's compare the tax saving of contributing $1000 by one person with a $30,000 income with that of a single person with a $100,000.

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