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Why Understanding Tax Brackets Is Crucial
Manage episode 354731681 series 3428540
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The US tax system is by design a complicated beast, and trying to understand it all is a futile challenge. And yet, it's extremely important that people understand how certain elements of it work. As we so often say, tax knowledge is tax power.
Most taxpayers assume that the amount of tax they pay is determined by which tax bracket they're currently in. This is both a true and untrue statement. If you're in the 24 percent bracket, does that mean every dollar you earn is taxed at that rate? Going forward, yes; looking backward, no.
Confused? Tune in to this week's podcast with host Johnny Dean and Rick "The Professor" Plum, CFP® to get the clear explanation in this week's episode of Managing Your Financial Future!
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