Understanding Marginal Income Tax Brackets

Understanding Marginal Income Tax Brackets

By any measure, the tax code is huge. It is almost 75,000 pages long, with footnotes.1And each Monday, the Internal Revenue Service publishes a 20- to 50-page bulletin about various aspects of the tax code.2Fortunately, it’s not necessary to wade through these massive...
How Income Taxes Work

How Income Taxes Work

The Internal Revenue Service estimates that taxpayers and businesses spend 8.1 billion hours a year complying with tax-filing requirements. To put this into perspective, if all this work were done by a single company, it would need about four million full-time...
What Do Your Taxes Pay For?

What Do Your Taxes Pay For?

Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money.In 2017, as in recent years, Americans spent more on taxes than on groceries, clothing, and shelter combined. In fact, we worked until late...
What If You Get Audited?

What If You Get Audited?

Tip: The chance of being audited rises with income level. In 2016, only 0.6% of those with incomes between $100,000 and $200,000 were audited; 2.1% of those with incomes between $500,000 and $1 million were audited; and 18.8% of those with incomes over $10...
What Is a 1035 Exchange?

What Is a 1035 Exchange?

Tip: Long-Term Coverage. 1035 exchanges can be used to exchange a life insurance policy, modified endowment contract, or an annuity contract for a long-term care policy. That means that an old life insurance policy may provide coverage for long-term care. Consult a...
Do You Owe The AMT?

Do You Owe The AMT?

American educational reformer Horace Mann called education “the great equalizer.”1 In football, it’s been said that turnovers are the great equalizer. And anyone who’s ever watched CBS’s “The Amazing Race,” knows airport delays are the great equalizer in a race around...

Pin It on Pinterest