Why Understanding Tax Brackets Is Crucial- Episode 124
The US tax system is by design a complicated beast, and trying to understand it all is a futile challenge. And yet, it’s extremely important that people understand how certain elements of it work. As we so often say, tax knowledge is tax power.
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 get the clear explanation in this week’s episode of Managing Your Financial Future!
The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances.
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.
Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.