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Your Tax Rates

» From: Montevallo, AL
Dear TaxMama:
Is your income tax rate, including social security, and
other income based on your adjusted gross income or gross income?
Joe
Dear Joe,
Uh, actually, neither.
Your income tax rate is based on your taxable income.
You know, the line your taxes are actually calculated on?
On the other hand, your Social Security withholding
is based on your gross payroll, before all deductions
have been taken.
Does this help to confuse you a little more?
Best wishes,
Eva Rosenberg
Your TaxMama
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