Quote:
Originally Posted by perfectnobody
so after reading this article to try and understand this better... how does this push you up into another tax bracket, i thought it would push you down,
for example (based on article) lets say your total income for the year is $78,000 putting you in the 25% bracket and you get a tax deductible of $3,000 for buying a Z, wouldn't that make your total taxable income $75,000? or is it the other way round with the $3,000 increasing your total taxable income to $81,000 pushing you into the 28% bracket (don't know why it would, maybe someone can clarify)
thanks! |
You are confused. The $3000 reduction would keep you in the same tax bracket, maybe even put you in a lower one. If your gross income was $81k, you would be taxed at a $78k rate after the tax credit.