Capital Gains

Brackets

In the last installment, we ran through the basics of how marginal income tax brackets work in the US and the way that many people misunderstand the concept. Today, we’ll cover the related concepts of tax brackets for capital gains and dividend income. Many people I know don’t really ever deal with these two concepts because their income comes from a W-2 (a.k.a. paid by their employer), but for the wealthy these are often their primary forms of income. Many people aspire to be able to afford to shop like the wealthy, but really we should start by aspiring to earn the way that they do. Continue reading Tax Brackets 102

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