Knowing your effective tax rate can help you understand how well you’ve been managing your tax situation throughout the year.

The alternative minimum tax (AMT) calculation determines whether a taxpayer must pay an additional amount beyond their regular income tax liability. To calculate AMT, taxable income is adjusted by ...

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. If you haven’t filed your taxes yet–possibly because you’re ...

What Is Retirement Income Tax? Retirement income tax refers to the portion of an individual's income that is subject to taxation during their retirement years. While many people assume that retirement ...

In 2023, the IRS collected nearly $4.7 trillion in gross taxes and processed almost 271.5 million tax returns. As Albert Einstein notably stated, income taxes are one of life’s hardest things to ...

Schedule K-1 details income from pass-through entities for tax reporting. Investors must allocate K-1 income by state to meet nonresident tax obligations. Credits may be available for taxes paid to ...

Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation for individuals and small businesses. Her work has appeared in Business Insider ...

Reinvest dividends to buy more shares; consider tax when selling shares accumulated via DRIPs. Dividends received outside IRA are taxable, increasing your stock's tax basis over time. Track cost basis ...

Your effective tax rate is a good indicator of how well you’ve been managing your tax situation. It’s smart to calculate your effective tax rate each year to help you make adjustments to your ...

Marginal taxation systems like the U.S. federal income tax system increase the percentage of income owed to taxes as a taxpayer’s income increases. There are seven income brackets. Your marginal tax ...