Dr. Friday breaks down how progressive tax rates work, explaining why it’s essential to adjust your tax planning. Many taxpayers misunderstand their tax brackets, leading to unexpected liabilities. She highlights how income levels impact tax brackets, with examples showing how a single individual earning $23,000 enters the 12% bracket. Learn how to leverage the progressive tax system to keep more money in your pocket.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Understanding the income tax rates will put more money in your pocket, or if nothing else, will help you understand why every year you’re having to write a check because you’re claiming married and two, but you don’t have any children. Or you’re thinking that if I have adult children, they still get to deduct them and it’s not really the same as if you have children under the age of 17. So if you are a single individual and you’re making $23,000, you’re going to actually hit the 12% tax bracket. We are progressive tax code, which means that the first dollar in doesn’t mean you’re going to be paying right up at that month, but you need to understand how the progressive code works to put money in your pocket. 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.