Tools tagged #tax
Every ecech. tool tagged tax: 10 free calculators and utilities across Financial & Currency. No signup, runs in your browser.
1099 vs W-2
Going contract means picking up both halves of payroll tax, losing paid leave, and buying your own benefits. The rate has to move a long way to break even.
Finance💰Bonus Withholding
22% federal plus 7.65% payroll is 29.65% before state tax. It is a deposit against your real bill, and it settles at filing either way.
Finance💰Capital Gains
Long-term means held more than a year, so selling on the anniversary is short-term. The 0% band is also far wider than most people realise.
Finance💰Marginal vs Effective
Crossing into the 24% bracket costs 24 cents on the dollars above the line and nothing on the dollars below it. The arithmetic makes it impossible to lose.
Finance💰Roth vs Traditional
Most calculators compare 7,000 against 7,000, which is not the same sacrifice. Invest the Traditional's tax refund too and the difference vanishes to the cent.
Finance💰Safe Harbor
The penalty is for paying too little during the year, not for owing at the end. Paying 110% of last year's tax protects you however big this year gets.
Finance💰Sales Tax & VAT
1,000 gross at 20% is 833.33 net, not 800. The tax was a percentage of the smaller number, so removing it divides rather than subtracts.
Finance💰SALT Cap
Above $505,000 of MAGI the cap drops 30 cents per dollar of income. Losing deduction on top of paying tax is what makes the real rate so much higher than the bracket.
Finance💰Self-Employment Tax
The rate applies to 92.35% of your profit, because the law removes what an employer's share would have been. On $100,000 that is $1,170 less than the number everyone quotes.
Finance💰Standard vs Itemized
You take the larger of the two, so itemised deductions under the threshold are worth exactly zero. Bunching two years into one is how people fix that.
Finance