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Perhaps also: That federal income tax in the US is levied in a progressive fashion; for example, to be taxed at the top income bracket at 37% as a single filer
by gzer0 4y ago
Perhaps also:
That federal income tax in the US is levied in a progressive fashion; for example, to be taxed at the top income bracket at 37% as a single filer in 2022 meant that any money made OVER the amount over $523,600 is taxed at 37%.
Too many people I know think that all of their money is taxed at a flat XX% based solely on the highest income tax bracket they are in. This is simply not the case at all.
- jjav 4y agoAnd in that topic, also that getting a tax refund or having to pay doesn't change anything about the amount of taxes you ended up paying that year. And how getting a big refund isn't a windfall, it's just bad planning.
- rjbwork 4y agoIndeed. Actually the opposite of a windfall. You've given the government an interest free loan for up to a year. I try to do minimal withholding and pay my taxes as late as possible.
- Spooky23 4y agoThat’s on purpose. The people who quack loudly about taxes prey on the ignorant. The estate tax is the most egregious example.