What a deduction is actually worth.
A worked example
Starting figures
- Deduction amount
- $6,000
- Marginal rate
- 24%
What it returns
- Tax saved
- $1,440
- Net cost of the spend
- $4,560
- Per $1,000 deducted
- $240
How to read the results
With the defaults above, tax saved works out at $1,440.