Quote:
Originally Posted by Buster
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That sounds like borderline tax fraud.
They'll really close up shop when they hit $249,999? 
Besides, if they paid attention in the final days of the election, Obama's $250K claim became $200K, then $150K according to Biden. |
No they don't have to close up shop but they could find ways of putting money away so it not considered income. They could by a car through their company instead of through their personal money thus reducing their income by that amount. I do have a friend who said last year he made right over $250,000 and that he does not see where he can make much more than that next year. He is planing on cutting back his hours some toward the end of the year so he does not jump into the higher tax bracket. I think this will become common with self employed people because why work harder to make $265,000 instead of $248,000 when all of that additional income will go toward paying higher taxes.