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| *The Commerce Journal>>>Other Taxes |
How can two different people pay diffrent taxes on the same amount of money.? |
is this really possible like if one got 50,000 in a lump sum versus someone who get it in a weekly check. If one got $50,000 in equal weekly increments and the other got $50,000 in a lump sum and their situations were otherwise identical, they would pay the same amount of tax. The withholding amounts up front would differ and the size of any refund after the return was filed would also differ. Yes, people pay different taxes based on their filing status, married/single, kids. There are many ways. Lump sum vs. a check every week doesn't make a difference if everything else is the same. The previous three answers are all partially correct. I'm not a Tax Consultant (yet) so my answers will probably not be totally correct either and you can鈥檛 base your tax decisions on what I say. However, let me respond. Not only is is possible, it's more likely that they'd pay somewhat different amounts that they'd pay the same amount. But let's clear one thing up first. Two taxpayers with identical tax situations earning the same amount would pay the same tax whether the income was in weekly increments or a once a year lump sum. The frequency of payment doesn't impact the tax bill. |
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