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"I pay 30% of my income in taxes!"
Have you heard or seen this before?
Let's talk taxes!
Did you know in America there are 7 Tax Brackets?
Everyone hates the tax man, but is it as bad as your crazy uncle thinks?
Thread
Have you heard or seen this before?
Let's talk taxes!
Did you know in America there are 7 Tax Brackets?
Everyone hates the tax man, but is it as bad as your crazy uncle thinks?
Thread
The Tax Brackets
10% (0 - $19750)
12% ($19750 - $80250)
22% (80k - $171050)
24% (171k - $326,600)
32% (326k - $414700)
35% (414k - $622050)
37% (everything above that)
10% (0 - $19750)
12% ($19750 - $80250)
22% (80k - $171050)
24% (171k - $326,600)
32% (326k - $414700)
35% (414k - $622050)
37% (everything above that)
How to calculate your effective tax bracket
Let say you are married & make 85k
Up to 19750 - taxed at 10% ($1,975)
19750 - 80250 - taxed at 12% ($7,260)
80250 - 85000 - taxed at 22% ($1045)
Bringing your tax bill to $10,280
Effective Tax rate is 12.1% (tax bill / income)
Let say you are married & make 85k
Up to 19750 - taxed at 10% ($1,975)
19750 - 80250 - taxed at 12% ($7,260)
80250 - 85000 - taxed at 22% ($1045)
Bringing your tax bill to $10,280
Effective Tax rate is 12.1% (tax bill / income)
Seems simple enough until you bring in Standard Deductions and Tax Credits
Standard deductions reduce the amount that your income is taxable
In this example 85k
Would get $24,400 standard deduction (Married Filling Jointly)
Taxable income is now $60,600
Standard deductions reduce the amount that your income is taxable
In this example 85k
Would get $24,400 standard deduction (Married Filling Jointly)
Taxable income is now $60,600
Tax Credit
These are dollar for dollar reductions in your tax bill
Think tax credit for child care, adoption fees, and solar panels to name a few
If you have enough deductions to reduce your tax bill past the standard deduction do that
Otherwise take the standard deduction
These are dollar for dollar reductions in your tax bill
Think tax credit for child care, adoption fees, and solar panels to name a few
If you have enough deductions to reduce your tax bill past the standard deduction do that
Otherwise take the standard deduction
Quickly lets review the above example
85k income
24,400 standard deduction
60,600 taxable income
10% up to 19,750 = $1975
12% up to 60,600 = $4902
Total taxable income is now 6,877 on 85k household income
Or
8.1%
85k income
24,400 standard deduction
60,600 taxable income
10% up to 19,750 = $1975
12% up to 60,600 = $4902
Total taxable income is now 6,877 on 85k household income
Or
8.1%
Yes Taxes Suck
However the next time someone says they pay 30% in taxes you will know what kinda cash they are making
or
That they are full of crap
Thanks for coming to my TED Talk
However the next time someone says they pay 30% in taxes you will know what kinda cash they are making
or
That they are full of crap
Thanks for coming to my TED Talk
Taxes Suck Dividends Don’t
Federal Tax Rate for dividends
0% if income is 40k or lower (80k married)
15% if under 441k (496k married)
Pick up @DivCultivator eBook to learn how to build a dividend portfolio
10$ for the next 10
(Aff) https://gumroad.com/a/430077043/CSdwG
Federal Tax Rate for dividends
0% if income is 40k or lower (80k married)
15% if under 441k (496k married)
Pick up @DivCultivator eBook to learn how to build a dividend portfolio
10$ for the next 10
(Aff) https://gumroad.com/a/430077043/CSdwG
2 left at 10$
Then it’s back to 14$!
Then it’s back to 14$!
