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Originally Posted by mrnoodle
Luckily the second year was really good for him.....except it put his personal income into the next tax bracket, and he couldn't afford the CPA to tell him how to get around the loopholes.
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Um, when you enter a higher tax bracket, the higher rate doesn't apply to your entire income, just the amount over the bracket cutoff. You don't suddenly owe $5000 more when you enter a higher bracket.