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What happens to a net personal income with the government lowers taxes?
Wiki User
∙ 11y ago
If the government lowers your taxes your NET income increases.
Wiki User
∙ 11y ago
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What is the benefit of claiming yourself as an exemption?
Each exemption is equal to an amount of income that is "exempted" from taxation. Hence it lowers your taxable income and therefore tax.
How much federal income tax will you pay if you make 150000 and file married with 5 dependents?
If your taxable income is at least $100,000, you generally have to figure your taxes using a Tax Computation Worksheet instead of the Tax Tables. Your $150,000 gross income is reduced by standard deduction of $10,900 in 2008 ($11,400 in 2009) and personal/dependent exemptions of $24,500 ($25,550 in 2009) to taxable income of $114,600 ($138,600 in 2009). Then go to Section B Married Filing Jointly/Qualifying Widow(er) for the Rate, which is 25 percent (.25), minus the Subtraction Amount of $7,313 ($7,625 in 2009). The result is your tax of $21,337 ($20,638 in 2009). Your tax is reduced by any income tax that was withheld. Also, if you itemized instead of taking the standard deduction, your taxable income would be lower, which then lowers your tax.
What are the benefits of accelerated depreciation?
Presumably you mean when doing tax accounting. Depreciation is an expense. Expense lowers income, which lowers the tax payable. However, as the same amount of depreciation will be taken on an asset overall, accelerated only meaning a larger amount is taken quicker...in latter years the benfit reverses...that is the amount of book (or non accelerated depreciation) is higher than the accelerated one, and less tax expense is received. hence, the difference is to lower taxable income at first and increase it later...providing cash (less tax) sooner, and requiring more cash later. So the time value of the cash savings sooner is the real benefit.
What is benefit of tax depreciation?
Strangly - there is no absolutely special aspect to "tax depreciation" than to any other accounting systems form of depreciation - which is a required for concept proper reflection of income and expense.To simplify the example: When a company buys something generally major -(called a capital asset) it does NOT actually have an expense. It has an asset, say $1,000.000 cash. It simply buys something (say a new piece of equipment). It now is worth the same the $1M is just reflected by the value of the equipment, not the cash.But under most all accounting systems - that asset is expected to lose value and be used up over a period of time. over that same period's, it is expected to contribute to making money, income. Depreciation just matches the 2 - the economic life of the asset to the cost of getting it.So (if we presume 10 year life) that 1,000,000 equipment is expense (costs - reduces income) $100,000 a year for 10 years.For financial purposes -costs are bad, they reduce income. for tax purposes, costs are good, they reduce income!There may be different determinations about how long something depreciates for, or exactly (arithmetically) it is calculated. Those differences are just a matter of TIMING - as over the time - the same amount - the $1,000,000 is taken as an expense for all systems. Tax generally tries to use the faster methods of depreciation - to get the expense to lower income as soon as possible. (So - speaking it through - say tax managed to expense it 2x as fast as book: 1st five years tax books have an expense greater than tax (lowers income), next five years books has an expense greater than tax (increasing tax income to book by the same amount it decreased the first 5 years. Only a matter of timing).The advantage to the company - because it has a greater expense for tax sooner, the taxable income is lower, they pay less tax early. Essentially recovering some of the $1,000,000 cash they spent (by paying less tax to the government) earlier than taking longer to recognize the expense.
Should you cancel inactive credit cards?
Yep, other wise you might have to continue paying fees and having an unused credit card lowers your credit rating.
What happens to net personal income when the government lowers taxes?
your net income increases, but your income tax decreases
What happens to net personal income when government lowers taxes?
your net income increases, but your income tax decreases
When the government lowers the income tax to stimulate the economy it is an example of what kind of policy?
monetary policy
What happens to the monetary base if the central bank lowers the discount rate?
If central bank lowers discount rate prices will go up and it will be monetarily more expensive.
What is the benefit of claiming yourself as an exemption?
Each exemption is equal to an amount of income that is "exempted" from taxation. Hence it lowers your taxable income and therefore tax.
What happens when you put water in vodka does it do anything?
it lowers the alcohol percentage.
I am working on my tax return and want to know how interest affect refunds.?
The income that was paid to you on an 1099-INT is taxable income. The interest paid to you will increase your overall income, which lowers your refund amount.
If unemployment is high and the federal government spends more and lowers taxes the government is utilizing what policy?
fisical policy
What happens wean you mix tomato sauce and baking soda?
It lowers the acidity of the tomato
What happens to the temperature of snow when sugar is added?
lowers down due to addition of impurities
What are the advantages of claiming depreciation on rental property?
It lowers your taxable income and therefore lowers your taxes.You are going to have to pay taxes on all depreciation "allowed or allowable" when you sell the property, so you might as well take advantage of it.
What happens when you put salt into a cup of water?
It lowers the boiling point, and makes it "salt water".
