Personal Tax Strategy - Our taxable income is calculated...

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Our taxable income is calculated based on a series of questions. How much money did you make, how many children do you have, are you married, and so on? Beyond that things begin to get a little more complicated. Do you own your own business? If so what expenses are associated with that? In addition I calculate the amount of money I save, and invest. If that money has an increase I will need to pay taxes on that. I also figure in any donations that I might make during the course of the year. While I am in school I take advantage of the American Opportunity Credit, which gives me a credit for going to school, which reduces the amount that I might need to pay per year. Tax adjustments and deductions are calculated as follows. I am given an amount that I need to pay each year based on my tax bracket. I am in the 15% tax bracket. (William, 2008) To make things simpler I am going to use my actual income. Before bonuses and overtime I make $33900.00 annually. Which means I should pay $5085.00 in taxes. This is the base line. If there were
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This note was uploaded on 07/20/2010 for the course FIS/210 fis/210 taught by Professor Jackblack during the Spring '10 term at University of Phoenix.

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Personal Tax Strategy - Our taxable income is calculated...

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