Understand what your Marginal Tax Rate is and how it impacts you. A small increase in income might push your marginal tax rate up to the next tax bracket! It’s the perfect time to educate yourself and understand what your marginal tax rate is and how to be tax efficient for this new tax year.
The United States uses a progressive income tax system. Put simply, the first dollar that you earn can be taxed at a much different rate than the last dollar that you earn. Here’s how to use that knowledge to your advantage.