Did it surprise you to learn that you’re not just taxed at a single flat rate?

Don’t be embarrassed if it did! This stuff is not explained to us and let’s face it, the IRS isn’t making the Tax Code an actual page-turner.

Here are some common questions I got when I shared this over on the clock app. Oh, and these numbers are all based on 2022 since we’re in the midst of tax season now. These numbers all change for 2023.

✔️Theres an income tax calculator in my free guide linked in my bio.

? This is money that’s NOT taxed because of different exemptions or discounts you’re entitled to. The IRS wanted to simplify taxes so people wouldn’t have to itemize their deductions (listing them out one by one).

It only makes sense to itemize if doing so will get you a bigger deduction which is rare. About 90% of people use the standard deduction.

’ ? You bet there are! There are FICA and state and local taxes to name just a few. I focused on the federal income tax to demonstrate how progressive (gradual) taxes work compared to a flat tax.

? HELL NO. I’m only showing it to you so you can have a little better understanding so you can communicate with your tax preparer better. They’re not going to take the time to explain this stuff to you.

? YES! There are deductions you can take advantage of that are called “above-the-line deductions” and guess which one is my favorite? The one for investing in pre-tax accounts! Every dollar you invest in a Traditional 401k or Traditional IRA lowers your tax liability for that year.

So not only will investing help you GROW your wealth, it will help you KEEP more of your money so you can have more tax flexibility when you’re planning your retirement….(read more)

LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

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