Chevrolet Corvette Stingray C7 Forum - View Single Post - Proposed Bill to give New car buyers tax break

dayvedayve · 01-20-2009, 06:48 AM

Your tax is based on what is left after deductions That is the "taxable income." Your "tax bracket" is then determined by that figure. Deductions come off gross income. Credits come off what you owe in taxes. Credits get the full dollar amount. Deductions only save you a percentage.

For example.... If your tax bracket is 15% You will save about $1100 on taxes.
If you are at 10% then it will be around $750

Another thing that could happen is that you could be in a lower tax bracket than normal if you were within the range of the deduction before. The lower your taxable income the lower your tax bracket.

01-20-2009, 06:48 AM	#49
dayvedayve Drives: 2006 Chevy Avalanche Join Date: Aug 2008 Location: Gulf Coast of Texas Posts: 386	Your tax is based on what is left after deductions That is the "taxable income." Your "tax bracket" is then determined by that figure. Deductions come off gross income. Credits come off what you owe in taxes. Credits get the full dollar amount. Deductions only save you a percentage. For example.... If your tax bracket is 15% You will save about $1100 on taxes. If you are at 10% then it will be around $750 Another thing that could happen is that you could be in a lower tax bracket than normal if you were within the range of the deduction before. The lower your taxable income the lower your tax bracket.