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3

Suppose my salary for the year is $1000. My tax bracket is 10%, thus my employer has withheld $100 and I only ever get to see $900. I'm going to just pretend these assumptions are compatible and answer theoretically, glossing over the details of what would actually happen if you actually earned only $1000 in a year. In reality, if you made only $1000 ...


2

For simplicity, I'll skip discussing social security, medicare, and any other tax credits you may have, and just answer your questions based on your numbers. Some employers offer pre-tax plans such as a 401K so that you can avoid the scenario you're describing, but assuming the traditional IRA is your only option, then if you borrowed $100 from someone, ...


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I think your question is overly simple. It ignores some important basic concepts... Someone earning only $1,000 would not be subject to income tax, you'd get 100% of any withholding back at tax time, knowing this, you could save yourself trouble and put "Exempt" on your W4. assuming you were using that number for simplicity, the same principle applies... ...


1

For most first time home buyers in the USA their tax world changes considerably when they buy a home. Mortgage interest allows people, for the first time, to itemize their deductions. Once that threshold is crossed many other deductions become available. This allows a person to decrease their withholding and increase their take home pay. Interest, ...


2

You report the interest actually received during the year, on your Schedule B. On FBAR you report the highest balance of the account during the year. It is not necessarily the balance on the last day of the year (or the first). You'll need to go through your statements and find the day with the highest balance, in US dollars. The FBAR requirement is a bit ...


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(I am a former UK taxpaying resident, though not an expert) In the UK, when you start a new job you are typically placed into the "Emergency Tax Code" where a large portion of your earnings is withheld because they don't know how much you will earn over the course of the year. You will need to file additional paperwork to declare your earnings (to-date and ...



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