All Taxes Are Not Created Equal

While it's true that the Internal Revenue Service usually taxes every last cent we make, not every penny is taxed the same.

When it comes to ordinary wage or salary income, the U.S. tax system is progressive, with individual tax amounts currently spread over six income brackets. The tax rates begins at 10 percent and go as high as 35 percent. In between are the 15 percent, 25 percent, 28 percent and 33 percent brackets.

By stair-stepping tax brackets, our progressive taxation system means that all levels of income aren't taxed at the same rate. The first portion of your earnings is taxed at the lowest, 10-percent, rate. The subsequent rates start applying when your income hits a set level for your filing status.

This means that your income is then taxed at the applicable rate for each portion of your earnings that falls into a particular range. Each bracket also takes into account a taxpayer's filing status, such as single or married filing a joint return.

In addition, the tax bracket amounts are adjusted each year to reflect inflation. Here are the 2007 brackets, which you'll use when filing your 2007 return next year, and the 2008 tax brackets, which will give you an idea of your 2008 tax bill.

I would include the tax tables for you but I don't want some moron pointing his finger at me saying "He Told Me So." On that note, so why did I include this article?
Simply because it's a silly bureaucratic way for a major information source to dance around the question at hand. If I Foreclose will I get a 1099. The answer is YES!
The type of money you foreclose on determines the type of recourse your lender has
1099A Purchase money or 1099C Non purchase money.

-Christopher Rockey