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Latest revision as of 10:23, 16 May 2026

Note: The article author is actually a CPA or tax specialized. This article is for general information purposes, and might not be construed as tax professional guidance. Readers are strongly motivated to consult their tax professional regarding their personal tax situation.

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Remember, a personal exemption of $3650 isn't deducted on tax but on your taxable income. Say for example your filing status is 'married filing jointly' with original taxable income of $100,000. This allows you to be under the marginal tax rate of 25%. So the money it will save you on personal exemption is $912.50 (calculation is simple: $3650 multiplied by 25%). For everyone spouse, that will be multiplied by two an individual save $1825.

Three Year Rule - The taxes owed in question has for for a return transfer pricing that was due at minimum three years in in the marketplace. You cannot file bankruptcy in 2007 and continue to discharge a 2006 tax owed.

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