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Note: The author is actually a CPA or tax quality. This article is for general information purposes, and needs to not be construed as tax details. Readers are strongly inspired to consult their tax professional regarding their personal tax situation.
2) Have participating inside your company's retirement plan? If not, test? Every dollar you contribute could reduce taxable income minimizing your taxes to .
But your employer comes with to pay 7.65% with the income he pays you for your Social Security and Medicare health insurance. Most employees are unaware of such extra tax money your employer is paying for. So, between you and your specific employer, the govt . takes about 15.3% (= 2 times 7.65%) of your income. If you are self-employed obtain a the whole 15.3%.
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