How to Use the Tax Brackets to Your Advantage – Episode 209

The US tax system is by design a complicated beast, and trying to understand it all is a daunting challenge.  And yet, unless you understand how the tax brackets work, you may be paying a LOT more in taxes than you actually owe.

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 perhaps gain some clarity on this week’s episode of Managing Your Financial Future!