It’s a quip you hear often when the lottery jackpot creeps upward: “Sure the jackpot is $40 million, but what do they leave you after taxes?” Honestly, on a jackpot this high, the answer is more than enough. But the exact amount depends on several factors, including your tax bracket. Before you start daydreaming about … Read more
A well-rounded portfolio can be a great way to invest and make some extra cash. Like most financial activities, however, trading stocks will affect your income tax. The IRS taxes investment income, but there are many factors that determine exactly how they do so. What are Capital Gains? Simply put, a capital gain is any … Read more
Depending on what you’re borrowing money for, a personal loan can amount to a fairly large sum of money. It’s important to understand the tax implications of receiving this money and of paying it back. In some cases personal loans don’t have any tax implications at all, but in others they can alter your tax … Read more
In this article we explain the difference between marginal tax rate and effective tax rate. Learn what each is used for and gain a clear understanding about how much of your income is truly expected to be paid by the IRS. What is the Effective Tax Rate? Calculated by dividing your total tax liability by … Read more
You became a doctor so you could help people but, honestly, the money doesn’t hurt either — until tax time. As someone who makes a good living, you’re also someone who can acquire a hefty amount of tax liability throughout the year. Fortunately, there are many things you can do to reduce that liability, giving … Read more
RSUs (Restricted Stock Units) are a big part of compensation for many employees, especially in the tech industry. Unfortunately they can be a little complicated to understand. If you’re scratching your head wondering what exactly you own and how it’s taxed, you’re not alone. Here are the things you need to understand about restricted stock … Read more
Death and taxes may be the only two sure things in life, but you can at least get some wiggle room on your taxes. You can achieve breathing room on your taxes through tax deductions, which let you use certain expenses to lower your income and therefore your tax liability. The concept itself is quite … Read more
You may have heard us mention before that the federal income tax is a pay-as-you-go tax. As the name implies, this means that you pay your taxes as you earn income. This is why your employer withholds federal taxes from your paycheck every week. Self-employed people, however, don’t have an employer to withhold taxes for … Read more
