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Because of the increasing tax rate better brackets, a reduction of taxable income at a higher bracket saves you more tax than gonna do it . reduction inside of a lower area. So let's compare the tax saving of contributing $1000 by an individual with a $30,000 income with that of a single person with a $100,000.

This provides us a combined total of $110,901, our itemized deductions of $19,349 and exemptions of $14,600 stay the same, giving us a complete taxable income of $76,952.

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