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The old adage is crime doesn't pay, but one certainly can wonder sometimes about the precision of it given the amount of of politicians that frequently be baddies! Regardless, the fact an individual making money from a criminal offence doesn't mean you you do not have to pay taxes. Correct. The IRS wants its unfair share of the ill gotten gains!

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What difficulties as your 'income' tax has a few tax brackets each featuring a own tax rate from 10% to 35% (2009). These rates are applied to your taxable income which is income for upwards of your 'tax free' earnings.

Congress finally acted on New Year's Day, passing the "fiscal cliff" laws. This law extended the existing tax rate structure for single taxpayers with taxable income of reduce USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For together with higher incomes, the top tax rate was increased to 40.6% These limits are determined with the foreign earned income difference.

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