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Computing Effective Tax Rates on Capital Income Congressional  Form

Computing Effective Tax Rates on Capital Income Congressional Form

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In this video you're going to learn how to calculate your effective tax rate so that you can make better educated decisions about your long-term financial plan. Question, do you think you will have a lower or higher effective tax rate in retirement compared to what it is today? Time to crunch some numbers...let's get to work! What's up guys! I'm KScholl, welcome to another financial awareness video. We're going to jump right into it today. Your effective tax rate as an individual is the total amount of taxes you owe divided by your taxable income. There are some key words I want you to focus in on regarding what I just said. Number one your effective tax rate is not the same as your top tier marginal tax bracket that you're in. Not all of you, but when some of you are out with friends and you mention how frustrated you are about being in a high tax bracket you're simply announcing to everybody your lack of knowledge of knowing how

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