In this article, I will explain a few basic tax concepts related to our Federal income tax system that include Tax Brackets, Marginal Tax Rate, and Effective Tax Rate. In the United States, we have a progressive tax system where people who earn more money generally pay more. There are six Federal tax brackets and … Read moreHow Do Marginal Tax Rate and Effective Tax Rate Work
The other day I was wondering if I owe any income tax this year, so I decided to give Intuit TurboTax Online Federal Free software a try. In general, I was impressed at how far online software industry has evolved over the years (not just Intuit’s). For this 2008 tax year software, you could hardly … Read moreTurboTax Online Income Tax Preparation Software Review
Unlike my regular job, where my employer withhold a portion of my salary to pay various taxes — i.e., Federal, State, City, Social Security, and Medicare — there’s no tax withholding for my self-employment income. To avoid any penalty, I have to pay self-employment tax and make estimated tax payments four times a year. However, … Read moreSelf-Employment, Estimated Tax, and Safe Harbor
This question came to me when I was reading The Dough Roller’s post about why do mutual funds close to new investors. Part of the post read: …taxes for existing investors went up after a fund closed. Why? Because there was no longer an influx of new investors to share the tax burden. Is it … Read moreWould You Like to Pay My Taxes?