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What else can I help you with?
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 is a deduction on an income tax from?
A deduction on an income tax form reduces an individual's taxable income, which in turn lowers the amount of tax owed to the government. Deductions can be based on various expenses, such as mortgage interest, student loan interest, medical expenses, or charitable contributions. By claiming deductions, taxpayers can decrease their overall tax liability, potentially resulting in a smaller tax bill or a larger refund. Deductions can be either standard or itemized, depending on which method the taxpayer chooses to maximize their tax benefits.
Does IRA deduction come off income or tax due?
An IRA deduction reduces your taxable income, not the tax due directly. When you contribute to a traditional IRA, the amount you contribute can be deducted from your total income when filing your taxes, which in turn may lower your overall tax liability. However, it does not directly reduce the amount of tax you owe; instead, it lowers the income on which your tax is calculated.
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 happens to net personal income when government lowers taxes?
your net income increases, but your income tax decreases
What happens to net personal income when the 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.
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 to our shadows when the sun lowers in the sky?
Our shadow starts to fad when the sun lowers in the sky because there is no light for our shadow to appear. (Also, as the sun gets lower, shadows get longer.)
What happens to catalysts during chemical reactions?
it lowers the amout of activation energy needed to start the reaction.
