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Revision as of 22:10, 10 May 2026


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Now we calculate if there is any income tax due. Assuming for one time that few other income exists, we calculate taxable income using the make money from the business ($20,000) and subtract standard model 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 this person would be $1,099. So, the total tax bill for this taxpayer would be $1,099 + $3,060 for their total of $4,159.

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Well, some taxpayers out there might not view the question kindly, thinking I am biased because I am probably asking from a tax practitioner point of view while using aim in an attempt to change the of saying.

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