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Revision as of 12:27, 10 March 2025
Despite the new tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal income tax bracket for many retirees is a whopping 46.3%. Why? Because Social Security benefits are subject to income income tax. Those affected are Social Security recipients who purchase the good fortune (misfortune?) pertaining to being subject to both the 25% taxes bracket and the 85% inclusion rate for Social Security benefits.
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If you add a C-Corporation to your business structure you can aid in eliminating your taxable income and therefore be qualified for one of those particular deductions by which your current income is too high. Remember, a C-Corporation is the liechtenstein individual taxpayer.
Late Returns - In case you filed your tax returns late, can you still treat the tax debt? Yes, but only after two years have passed since you filed the return more than IRS. This requirement often is where people meet problems attempting to discharge their credit rating card debt.
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