Timeline for Real Cost of Tax deductible item
Current License: CC BY-SA 3.0
10 events
| when toggle format | what | by | license | comment | |
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| Jul 6, 2017 at 23:45 | history | tweeted | twitter.com/StackFinance/status/883109581307695106 | ||
| Jul 6, 2017 at 17:19 | comment | added | JTP - Apologise to Monica♦ | Not your effective rate, your marginal rate. My effective rate may be around 12%, but the next $100 is taxed at 25%, and the last $100 was taxed at 15%. Yes, I can plan that closely. | |
| Jul 6, 2017 at 15:23 | history | edited | D Stanley | CC BY-SA 3.0 |
added 1 character in body; edited title
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| Jul 6, 2017 at 15:11 | answer | added | farnsy | timeline score: 2 | |
| Jul 5, 2017 at 14:47 | comment | added | Johnny | Thanks! So I could basically ballpark it by my effective rate from last year? i.e i if my effective rate was 20% then I am saving $20 in taxes on a $100 because I am paying with pretax dollars? | |
| Jul 5, 2017 at 1:39 | comment | added | dave_thompson_085 | A deduction is not a fixed reduction in tax; a deduction reduces the income subject to tax, but how much it reduces your tax depends on the marginal rates applicable which depend on nearly everything about your situation: amounts and often types of other income, other allowable expenses and deductions (sometimes limited or modifed by your income), filing status, and state and sometimes city of residence. However I don't think there's any situation where your Federal marginal rate could be as much as 50%. | |
| Jul 4, 2017 at 20:13 | comment | added | Johnny | I actually do try and save a portion of money coming in for taxes :). The way I see it, if the government is taking all this money and I can legally keep some and look at it as a discount on getting a nicer replacement for a computer that needs replacing anyway. Why not? | |
| Jul 4, 2017 at 14:10 | comment | added | Grade 'Eh' Bacon | Be careful that you aren't being overly optimistic in this; personally I believe it is better to think about things in the same 'pre-tax' dollars as your normal income. After all, when you get a client through your business and charge $500, do you think about that as $500, or $400 after tax? | |
| Jul 4, 2017 at 13:51 | review | First posts | |||
| Jul 4, 2017 at 16:09 | |||||
| Jul 4, 2017 at 13:50 | history | asked | Johnny | CC BY-SA 3.0 |