History Of Your Federal Tax: Difference between revisions

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Revision as of 03:29, 31 August 2026


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Now we calculate when there is any taxes due. Assuming for once that few other income exists, we calculate taxable income by taking the profit from the business ($20,000) and subtract the basic 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 extra earnings tax due for task would be $1,099. So, the total tax bill for this taxpayer would be $1,099 + $3,060 for a total of $4,159.

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