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There's an impact between, "gross income," and "taxable income." Revenues is the amount you can certainly make. taxable income is what federal government bases their taxes using. There are plenty of things you can subtract from your gross income to give you a lower taxable income. For most people, incidentally game is to discover and use as many of these as possible, so you can minimize your tax expertise.

Example: Mary, an American citizen, is single and lives in Bermuda. She earns an income transfer pricing of $450,000. Part of Mary's income will be subject to U.S. taxes at the 39.6% tax rate.

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