Three Income Tax Misconceptions

Summer is here. Tax season has come and gone and even those of us that extend can probably ignore our taxes for a few months. However, I thought I would take this ignoring of taxes issue head on with a discussion of income taxes. Over the years, I have noticed that typically, my friends, family, acquaintances and clients have at least a few misconceptions of income taxes. Three Misconceptions: Marginal tax rates generally don’t apply to all income Deductions and income tax credits aren’t equally beneficial Itemized deductions often have less impact than expected First things first. The United States has a progressive income tax system which means higher levels of income are taxed [...]