Federal Income Taxes for Individuals
If you are, or intend to be, a self-employed software professional, the individual income tax rates may be relevant. In the United States, there are several important differences between how corporations and how individuals are taxed. For one, fewer expenses are deductible. (Interest on a house loan is deductible, but credit card interest, food, utilities, and clothes are not.) Second, the tax rates and ranges of income for individuals are different from the corporate rates and ranges. Another difference is that the corporate rates aren't adjusted every year for inflation, but the individual rates are. In theory, an individual won't be pushed into a higher tax rate because of inflation.
Table 16.3 shows the ...
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