Quote:
Originally posted by Lenny2
All a write off does is reduce the amount of income you pay taxes on, but some people think if you have a $1000 write off it reduces your tax bill by $1000....that's not true.
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Correct
To figure out how much in taxes you will save, just subtract your tax bracket % by $1,000.
So, I'm in the 35% tax bracket plus around 8% for state, that's 42%
42% of $1,000 is $420
So for ever $1,000 in deductions I can come up with, 42% stays in my pocket.