Tax Brackets

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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Brackets

Today we take a crack at simplifying a concept that I’ve found is misunderstood by a pretty large portion of the population. As always, this has nothing to do with people being “smart” or not, but is more about the sort of common knowledge that gets passed around in our society and the lack of any real formal education taking place in matters related to personal finance. So, I don’t want anyone to ever feel like this stuff is too hard or to feel bad for not already knowing it. The goal here is to build and expand your base of knowledge so you can then apply it to your own life and then just win all over the place. Continue reading Tax Brackets 101

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