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Originally Posted by Matt Let's say you make $100,000 this year. If you pay $5,000 in taxes on the Z, then you'll pay taxes on $95,000 of your income in

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Old 11-24-2009, 06:33 AM   #21 (permalink)
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Quote:
Originally Posted by Matt View Post
Let's say you make $100,000 this year. If you pay $5,000 in taxes on the Z, then you'll pay taxes on $95,000 of your income in 2010. It's a write-off or "deduction" not a true credit.

New Car Tax Rebate- Obama Economic Stimulus Plan: Cash Back on 2009 Vehicle Purchase, Not Tax Credit on Federal Return | Suite101.com
so basically, they take the amount of tax you pay on a "Z" (i think it's about $3,000 for base plus sports... not 100%) and deduct that from your gross income for the year and you are only taxed on the remaining...

so you are not actually getting$3,000 back, just getting taxed less.

still better than i was expecting in the first place, so it's still great!
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