How many $'s in deductions does it take to = 1$ in returns (about; federal)/?

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How many $'s in deductions does it take to = 1$ in returns (about; federal)/?

2007-02-03 04:31:46 · 2 answers · asked by captainbmouse 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

It depends on what tax bracket you're in. In a 25% bracket, it takes $4 in deductions to equal $1 additional refund. In a 15% bracket, it takes $6.66 in deductions to get $1 additional refund.

2007-02-03 14:51:49 · answer #1 · answered by Judy 7 · 0⤊ 0⤋

That depends on your marginal tax rate. If your marginal tax rate is 28%, then every dollar of additional deduction equates to 28 cents of tax.

2007-02-03 13:04:49 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋