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From: btb@hogpc.UUCP (B.BURGER)
Newsgroups: net.taxes
Subject: re: tax bracket question (must use tables)
Message-ID: <376@hogpc.UUCP>
Date: Sat, 31-Mar-84 14:11:39 EST
Article-I.D.: hogpc.376
Posted: Sat Mar 31 14:11:39 1984
Date-Received: Sun, 1-Apr-84 07:35:43 EST
Lines: 20

>  Please look at the instructions for line 38, form 1040. One can either
>  use the tax tables (which are discrete) or one of the tax schedules X,
>  Y, or Z (which are continuous) to compute your tax.

Nope.  The instructions for line 38 say you must use the (continuous)
schedules if your income is $50,000 or more or you use income
averaging.  They then say:

  "If none of the above conditions apply to you, you MUST use the
   Tax Table to find your tax."

So while it's true that added income that pushes you into a higher
tax bracket still leaves you better off in general, the fact that
the Tax Tables round your income to the nearest $50 introduces
discontinuities.  

I liked the suggestion someone made to add to an IRA just enough to
make your taxable income end in $...49.00 or $...99.00.

--Bruce Burger     AT&T-Information Systems     Lincroft, NJ