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Path: utzoo!watmath!clyde!floyd!harpo!ihnp4!houxm!hound!5131eds
From: 5131eds@hound.UUCP (E.SHIPLEY)
Newsgroups: net.taxes
Subject: Steps in federal income tax
Message-ID: <448@hound.UUCP>
Date: Wed, 4-Apr-84 09:08:58 EST
Article-I.D.: hound.448
Posted: Wed Apr  4 09:08:58 1984
Date-Received: Thu, 5-Apr-84 00:34:14 EST
Organization: AT&T Bell Labs, Holmdel NJ
Lines: 13

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