tax credits

If you’re in a lower tax bracket and have been looking for a good reason to get off your butt and start saving for retirement, here it is… In short, you may be eligible for a tax credit that offsets as much as 50% of your traditional or Roth IRA, […]

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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 […]

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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 […]

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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 […]

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Fiscal Cliff Tax Changes

by Michael on Jan 1, 2013 · 1 comment

Well… Congress technically let us go over the fiscal cliff, though the Senate has now passed legislation to address the situation. The House should consider it soon and, after some pontificating, I expect it (or something very similar) to pass — perhaps narrowly — and to be signed into law. […]

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