tax brackets

Do you know your income tax bracket? I know ours. For 2013, we were in the 25% federal tax bracket. But what does that really mean? For background, since I’m married and we file jointly, that means our taxable income fell somewhere in the $72,501-$146,400 range. If you want to […]

Read the full article >>>

Curious as to what next year holds in terms of federal income tax brackets? Well, look no further, because I’ve got the details below. But before I get to the brackets themselves, I wanted to take a moment to remind you exactly how tax brackets work… In our progressive tax […]

Read the full article >>>

What is Tax-Equivalent Yield?

by Michael on May 28, 2013 · 3 comments

I’ve mentioned tax-equivalent yield in passing a couple of times. Today, I want to spend a few minutes expanding on the topic. In general terms, whenever you hold a tax-exempt investment in a taxable account, you’re earning more (after taxes) than you would with an equivalent, taxable investment. Said another […]

Read the full article >>>

Why Buy I-Bonds?

by Michael on Apr 24, 2013 · 1 comment

I’ve received a couple of inquiries about why I’m such a fan on Series I Savings Bonds, so I thought I’d spend a bit of time discussing that today. As a reminder, I-Bonds are low-risk, inflation-indexed savings bonds that are issued (and backed) by the Federal government. So what’s so […]

Read the full article >>>

In addition to putting a cap on retirement accounts, President Obama’s budget proposal includes a possible transition to the so-called “chained CPI” for inflation adjustments. This includes things like cost-of-living increases for Social Security recipients as well as various tax provisions that are indexed to inflation. But what exactly is […]

Read the full article >>>

Marginal vs. Effective Income Tax Rates

by Michael on Feb 22, 2013

Earlier this week, I met with our tax guy and picked up a copy of our now-completed income tax returns for review. In looking through the numbers, I noticed something rather interesting. Though our adjusted gross income (AGI) was similar between last year and this year, there was a somewhat […]

Read the full article >>>

Federal Income Tax Brackets for 2013

by Michael on Jan 15, 2013

Now that the dust has settled from the fiscal cliff debate, it’s time to update our federal income tax brackets for 2013. Before I list the relevant details, however, I just wanted to take a moment to remind you exactly how tax brackets work… In our progressive tax system, the […]

Read the full article >>>

How Do Income Tax Brackets Work?

by Michael on Jan 3, 2013 · 1 comment

I’ve recently seen a number of comments that have betrayed a fundamental misunderstanding about how income tax brackets work. I thus feel compelled to offer an explanation. I’ve actually mentioned this in passing, but I’ve decided that it’s worth of a post of its own. Yes, this is old news […]

Read the full article >>>