Debt Settlement
Date: Thu, 02/24/2005 - 20:16
Hi
My friend George has got the break of $6500 in his debt settlement process. He files his I.Tax return jointly with his wife.George has an expectation of annual income of $52100 in this financial year. How mich amount can he be benefited by the process of debt settlement after adjusting the Income Tax? Please help me out.
My friend George has got the break of $6500 in his debt settlement process. He files his I.Tax return jointly with his wife.George has an expectation of annual income of $52100 in this financial year. How mich amount can he be benefited by the process of debt settlement after adjusting the Income Tax? Please help me out.
As Mr. George files his I. Tax return jointly with his wife and
As Mr. George files his I. Tax return jointly with his wife and his expected annual income of $52100 for this financial year, he will be fallen within 15% Tax bracket (rate applicable for 2004). As a result, Income tax on settled amount will be ($6500*15% = $975). Therefore his gain after a debt settlement will be $5525 ( 6500-975).
Thank you,
Simon
