[net.taxes] Steps in federal income tax

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