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[OM] Re: [OT] US taxes, was: [ot] alternative fuels

Subject: [OM] Re: [OT] US taxes, was: [ot] alternative fuels
From: Mike <watershed@xxxxxxxxxxxxxxx>
Date: Thu, 12 Apr 2007 20:11:31 -0700
>
>
>What is interesting to me there is that there is no tax-free  
>threshold - if I earn $10 in a year in the US I'd owe the IRS a  
>dollar? That's harsh. 
>
There is a threshold called the "standard deduction" to which everyone 
is entitled. $5150 this year. Also something called the "Earned Income 
Credit" so that if you have earned actual low wages as opposed to 
unearned income such interest and dividends etc. the government will 
actually pay you money based on a sliding scale. You can check with 
Walmart for the details as they suggest it to their underpaid employees 
along with state subsidized health care. 
<http://www.irs.gov/individuals/article/0,,id=96406,00.html>

And self employed workers get a break on Self Employment Tax aka Social 
Security. See line 27 on the tax form.
<http://www.irs.gov/pub/irs-pdf/f1040.pdf?portlet=3>  I'll get to be 
intimate with it this weekend :(

Mike


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