Question

Reducing our taxable income to below 80,250 from 22 to 12% changed refund incrementally and not by 10%. Why not?

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Employee

1) Depends on how much you reduced the income by, as the 22% is only applied to the income above a certain level.

2) If you have self-employment income...then it depends on what kind of income you changed. The SE tax only changes when your net profit changes.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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