So, when is a 25% marginal tax rate REALLY a 61% tax rate?
When a single man or woman can no longer claim their child, and lose Head-of-Household status...
A client's taxable income went up by $4050 because he could no longer claim his child. The TAX went up by $2486.
THAT'S 61.3% tax rate on the increased taxable income!!
Go figure!