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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: purple monkey on February 07, 2016, 07:37:22 PM

Title: How much money do you have to make to pay the first dollar in taxes?
Post by: purple monkey on February 07, 2016, 07:37:22 PM

I am still confused by personal exemptions and standard deduction.
Can you wise ones help me out?
TIA

Title: Re: How much money do you have to make to pay the first dollar in taxes?
Post by: Jack on February 07, 2016, 07:51:20 PM

It depends on your filing status, number of exemptions, etc.

In my case, married-filing-jointly with two exemptions (for me and my wife), my AGI can reach ($12600 + $4000 * 2) = $20600 before I start getting taxed.

Of course, that assumes no credits and no deductions. If you've got a lot of both, it's possible to earn a lot more (http://rootofgood.com/make-six-figure-income-pay-no-tax/) before paying the first $1 in tax.

Title: Re: How much money do you have to make to pay the first dollar in taxes?
Post by: tj on February 07, 2016, 08:15:29 PM

Also depends on if your income is earned or LTCT/Qualified Dividend. If all your income is qualified dividends then the number is even higher.

Title: Re: How much money do you have to make to pay the first dollar in taxes?
Post by: redcedar on February 07, 2016, 08:35:01 PM

This article may be a great starting point for you. It can easily be adapted to 2016 if desired.

http://www.millionaireeducator.com/2014/10/2015-free-money.html

Title: Re: How much money do you have to make to pay the first dollar in taxes?
Post by: purple monkey on February 07, 2016, 09:38:15 PM

Quote from: Redcedar on February 07, 2016, 08:35:01 PM

This article may be a great starting point for you. It can easily be adapted to 2016 if desired.

http://www.millionaireeducator.com/2014/10/2015-free-money.html

Super, super helpful!

Title: Re: How much money do you have to make to pay the first dollar in taxes?
Post by: Ed Mills on February 08, 2016, 05:00:15 AM

Did somebody say free money?!  Here are my numbers for 2016:  http://www.millionaireeducator.com/2015/10/2016-free-money.html (http://www.millionaireeducator.com/2015/10/2016-free-money.html).

Title: Re: How much money do you have to make to pay the first dollar in taxes?
Post by: ender on February 08, 2016, 05:55:16 AM

http://forum.mrmoneymustache.com/taxes/optimizing-taxes-maximizing-benefits-for-parttime-working/