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Latest revision as of 10:26, 16 September 2026
The IRS has set many tax deductions and benefits in place for taxpayers. Unfortunately, some taxpayers who are earning a higher level of income can see these benefits phased out as their income climbs. Remember, a personal exemption of $3650 is not 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 causes you to be under the marginal tax rate of 25%.
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