Comments on: What is the after tax cost of the deductions for the following question? http://www.whatcanideductonmytaxes.com/what-is-the-after-tax-cost-of-the-deductions-for-the-following-question.php Personal income tax deductions explained. Mon, 07 Feb 2011 18:14:50 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Bash Limpbutt's Oozing Cyst© http://www.whatcanideductonmytaxes.com/what-is-the-after-tax-cost-of-the-deductions-for-the-following-question.php/comment-page-1#comment-181 Bash Limpbutt's Oozing Cyst© Wed, 30 Jun 2010 14:04:09 +0000 http://www.whatcanideductonmytaxes.com/what-is-the-after-tax-cost-of-the-deductions-for-the-following-question.php#comment-181 His cost is 28% or less than the original amount. It depends upon how close to the bracket threshold he is. If he's only $1 into the 28% bracket, all but $1 of it will be at the 25% bracket and the savings would therefore be a hair over 25%. His cost is 28% or less than the original amount. It depends upon how close to the bracket threshold he is. If he’s only $1 into the 28% bracket, all but $1 of it will be at the 25% bracket and the savings would therefore be a hair over 25%.

]]> By: StephenWeinstein http://www.whatcanideductonmytaxes.com/what-is-the-after-tax-cost-of-the-deductions-for-the-following-question.php/comment-page-1#comment-182 StephenWeinstein Wed, 30 Jun 2010 14:04:09 +0000 http://www.whatcanideductonmytaxes.com/what-is-the-after-tax-cost-of-the-deductions-for-the-following-question.php#comment-182 The answer for your homework assignment can be found by multiplying the marginal tax rate by the increase in the deductions. This is actually not the correct answer because it does not consider the effect on the earned income credit or the alternative minimum tax. The answer for your homework assignment can be found by multiplying the marginal tax rate by the increase in the deductions.

This is actually not the correct answer because it does not consider the effect on the earned income credit or the alternative minimum tax.

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