Comment by qbasic_forever
3 years ago
If you're "borrowing" money from a friend to bump up your income, you're likely going to bump yourself up into a higher tax bracket and end up paying more money in taxes.
3 years ago
If you're "borrowing" money from a friend to bump up your income, you're likely going to bump yourself up into a higher tax bracket and end up paying more money in taxes.
On the money you borrowed. Moving into a higher tax bracket does not mean you pay the higher rate on all earning, but rather only marginal earnings in the higher bracket.
Regardless, it doesn't make sense to pay taxes on borrowed money. I'm not sure this scheme is real.