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B) Interest earned, but is not paid, throughout a bond year, must be accrued at the end of the bond year and reported as taxable income for your calendar year in that the bond year ends.

But your employer additionally has to pay 7.65% in the income he pays you for your Social Security and Medicare insurance. Most employees are unaware in this particular extra tax money your employer is paying for. So, between you and suddenly your employer, the united states government transfer pricing takes 14.3% (= 2 times 7.65%) of the income. Should you be self-employed obtain a the whole 15.3%.

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