Getting Rid Of Tax Debts In Bankruptcy: Difference between revisions

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Marginal tax rate could be the rate of tax as opposed to on your last (or highest) volume income. In the last described example, the individual is being taxed with a marginal tax rate of 25% with taxable income of $45,000. This may mean this person is paying 25% on her last dollars of income (more than $33,950).

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Defenders of this IRS position would say it comes home to Section 61. The waitress provided a service for me, and I paid for it. Compensation for services is taxable. End of record.

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