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Understand Your Tax Rate
Listen and Subscribe Here
Has calculating your income tax rate in the past been overwhelming?
Today, I’m going to discuss the complexities of income tax rates, particularly for self-employed individuals. I explain the progressive tax system, the difference between marginal and average tax rates, and provide practical tips for calculating taxes accurately. The conversation aims to demystify tax calculations and empower listeners with knowledge to manage their finances effectively.
Join me in this episode to hear some tips on estimating your income tax rate and how you can avoid errors when calculating your income tax.
Listen and Subscribe Here
Has calculating your income tax rate in the past been overwhelming?
Today, I’m going to discuss the complexities of income tax rates, particularly for self-employed individuals. I explain the progressive tax system, the difference between marginal and average tax rates, and provide practical tips for calculating taxes accurately. The conversation aims to demystify tax calculations and empower listeners with knowledge to manage their finances effectively.
Join me in this episode to hear some tips on estimating your income tax rate and how you can avoid errors when calculating your income tax.
Also mentioned in today’s episode:
00:00 Understanding Income Tax Rates
09:33 The Progressive Tax System Explained
11:58 Marginal vs. Effective Tax Rates
17:04 Calculating Your Taxes Accurately
23:20 Final Thoughts and Resources
Takeaways:
People confuse marginal tax rates with their actual tax rate.
Income tax calculations are more complex than they seem.
Self-employment tax is a flat rate of 15.3%.
Estimating tax rates requires guessing due to timing.
Graduated income tax means different rates apply to different income slices.
Both low and high earners pay zero tax on the first $11,000.
Marginal tax rates only apply to the last dollar earned.
Average tax rates provide a more accurate tax estimate.
Online calculators can simplify tax calculations.
Self-employment tax should not be double counted in estimates.
If you enjoyed this episode, please rate, review and share it!
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Links:
Get your FREE Deductions Guide
Listen to last week’s episode: Tips on Filing an Extension
5 Invisible Things in My Business
LISTEN AND SUBSCRIBE HERE
This week on the podcast, I’m sharing some of the invisible aspects of running my tax business and some of the hard stuff that I’ve had to overcome while running my business and podcast.
Join me in this episode to learn more about my entrepreneurial journey and what I’ve learned along the way.
LISTEN AND SUBSCRIBE HERE
This week on the podcast, I’m sharing some of the invisible aspects of running my tax business and some of the hard stuff that I’ve had to overcome while running my business and podcast.
Join me in this episode to learn more about my entrepreneurial journey and what I’ve learned along the way.
Also mentioned in today’s episode:
My struggle with perfectionism 2:05
My superpower when it comes to taxes and what I struggle with 8:26
What I've chosen to prioritize in business 13:35
If you enjoyed this episode, please rate, review and share it!
Links:
Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc
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