For example, if you had $50,000 in terms of income and a tax deduction of $5,000, your taxable income would be reduced by $5,000. Also, if you find yourself in the 12% tax bracket, the taxes you owe will be minimized by $600. This amount of money represents 12% of $5,000.
So, yes, tax deductions are great, helping many Americans, but when compared to tax credits, your financial balloon gets burst pretty quickly.
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4 thoughts on “Will Uncle Sam Tax My Stimulus Payment?”
My wife and I have already given $1,200.00 to our daughter who is about to lose her job. We also plan to give her any additional new monies we receive. Where does that place us tax-wise–or her?
How about PPP. I’m a one man show so the PPP was to aid in replacing my huge losses as compared
to my 2019 income. Is that money going to be added to my tax bill?
I did not receive a stimulus check last yearor this year. I do not file a tax return as I don’t make enough money.
I did not receive a stimulus check last year. I did not file a tax return and did not make enough money.