|
| |
No Contribution |
75% EITC |
90% EITC |
| Net Income Before Contribution & CNI Tax |
$220,000 |
$220,000 |
$220,000 |
| EITC Contribution |
None |
$10,000 |
$10,000 |
| Federal Taxable Income Before PA CNI Tax |
$220,000 |
$210,000 |
$210,000 |
| PA CNI Tax @ 9.99% |
$21,978 |
$20,979 |
$20,979 |
| Federal Income After PA CNI Tax |
$198,022 |
$189,021 |
$189,021 |
| |
|
|
|
| PA CNI Tax Savings (After Deduction for Contribution) |
None |
$999 |
$999 |
| EITC (PA CNI Tax Savings) |
None |
$7,500 |
$9,000 |
| PA Tax Savings – Total |
None |
$8,499 |
$9,999 |
| |
|
|
|
| Federal Taxable Income |
$198,022 |
$196,521 |
$198,021 |
| Federal Tax |
$60,479 |
$59,893 |
$60,478 |
| Federal Tax Savings |
None |
$586 |
$1 |
| |
|
|
|
PA Savings Total
Federal Tax Savings
Total Tax Savings |
None
None
None |
$8,499
$586
$9,085 |
$9,999
$1
$10,000 |
| |
|
|
|
| Annual Cash Required to Contribute $10,000 |
$0.0 |
$915 |
$0.0 |
| |
|
|
|
| Percentage Effective Total Tax Savings When Contributing
$10,000 with an EITC |
|
90.85% |
100.0% |
|
|
