How To Handle With Tax Preparation: Difference between revisions
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Revision as of 08:37, 8 January 2025
A credit is allowed for foreign income taxes paid or accrued. The credit is limited special part of U.S. tax due to foreign source income. It isn't refundable, but any excess credit may be carried to other years to reduce tax.
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The 'payroll' tax applies at a fixed percentage of your working income - no brackets. Regarding employee, fresh 6.2% of your working income for Social Security (only up to $106,800 income) and a person specific.45% of it for Medicare (no limit). Together they take an additional 7.65% of your income. There is no tax threshold (or tax free) amount of income to do this system.
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