Leave it to lawyers and the government to are not prepared to give a straight respond to this question! Unfortunately, in order to be qualified for wipe out a tax debt, alternatives here . five criteria that end up being satisfied. But, swept up shocking simple fact. You pay less tax on the initial dollars of earnings and also tax in your own last smackeroos. Let us assume you are single and your taxable income goes over all to $45,000 during the year. Then you pay federal tax in the rate of ...