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The 'payroll' tax applies at a hard percentage of the working income - no brackets. A good employee, obtain a 6.2% of your working income for Social Security (only up to $106,800 income) and 4 transfer pricing .45% of it for Medicare (no limit). Together they take much more 7.65% of your income. There's no tax threshold (or tax free) level of income for this system.

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If you add a C-Corporation for your personal business structure you are able to reduce your taxable income and therefore be qualified for several of the deductions that your current income is simply high. Remember, a C-Corporation is the liechtenstein individual citizen.

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