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Note: The writer is yet it will help CPA or tax technician. This article is for general information purposes, and needs to not be construed as tax aid. Readers are strongly asked to consult their tax professional regarding their personal tax situation.

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Because within the increasing tax rate of higher brackets, a reduction of taxable income to the higher bracket saves you more tax than very same reduction inside of a lower group. So let's compare the tax saving of contributing $1000 by an individual with a $30,000 income with a single person with a $100,000.

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