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Money and Finances
Reply to "Government Shutdown and Finances , observation and effect on DMV area"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]What burns me up - and must learn to let go — is that when this mess is over - and we are given our money (the feds who’ve had to go into office and pretend nothing is going on) they will pay us in one lump sum. This is basically giving them an interest free loan (as we will be taxed at the highest rate - so they win. Too late to get out. Thanks for the vent![/quote] I thought about the interest part the other day. If this situation continues into the new year, the lump sum/back payment will count towards our earnings for 2026. This will increase our overall income for 2026 and may push some into a higher income tax bracket when you file in 2027. Additionally, it could lead to complications with the Thrift Savings Plan, causing the maximum contribution limits for the year to be reached more quickly because of the lump sum[/quote] But your tax bracket will be lower in 2025… so?[/quote]
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