5131eds@hound.UUCP (E.SHIPLEY) (04/04/84)
As has been previously noted, for taxable incomes below $50,000, the federal tax is determined by a table. This provides the opportunity to adjust ones income so it is just below the boundary of an increase in tax. How do you adjust your taxable income, you ask? Simple, I answer. You increase you taxable income by decreasing your IRA contribution. If my taxable income before IRA deduction is $31,951 , for example, I should deposit only $1952 to the IRA, leaving a taxable income of $29,999 , nicely below the boundary. I keep the other $48 that I could have contributed to the IRA, and I use it to take my family to McDonald's. Ed Shipley AT&T Bell Labs - Holmdel hound!5131eds