Originally Posted by
411A
For those that have been in SV for a very long time, may well not realise that these changes to section 911 of the Internal Revenue code, which governs these things, were made a very long time ago (12 years actually) and publication 54, which explains all this was also updated some time ago.
In short, old news.
PS. Remaining in SV, as well as other ME locations for too long tends to mask the real world...eh boys?
411, are you saying there is life outside of SV?
There was a recent change to the tax code in the last few months. I believe in summary, that now, any dollar of income over the exclusion of $82,400 will be taxed as though you made $82,40
1.
Originally, before this recent change, any dollar over the annual exclusion was taxed as though it was the first dollar that you earned.
The difference now meaning that you are automatically taxed in a much higher tax bracket on any excess earnings.
That change can cost someone alot of money.