Why Ought I File Past Years Taxes Online: Difference between revisions

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The IRS has set many tax deductions and benefits instead for individuals. Unfortunately, some taxpayers who bring home a advanced level of income can see these benefits phased out as their income climbs.

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Now we calculate if there is any income tax due. Assuming for the moment that nothing else income exists, we calculate taxable income using the profit from the business ($20,000) and subtract the standard deduction (which is $5,950 for 2012) less the exemption deduction (which is $3,800 for 2012). The taxable income would then be $20,000 - $5,950 - $3,800 which equals $10,250. Based on tax law the additional income tax due for lotto would be $1,099. So, the total tax bill for this taxpayer would certainly be $1,099 + $3,060 for a total of $4,159.

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