Joe Guelda

Being Proactive with Tax Planning – Understanding Tax Rates – Marginal vs Effective/Average vs Actual

Your marginal tax rate is the percent of tax that you will pay on your next dollar of income based on your tax bracket. For instance, if you are married filing joint and your taxable income is $76,050, you are in the 12% tax bracket. Therefore, your next $1,000 of income will increase your Federal tax by …

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