Text 408-8541883 and agent near you to show you income and disability benefits from life insurance products like Index Universal Life Insurance and Fixed Indexed Annuities.
In the United States we have what is known as a progressive tax system. This means that we pay a higher percentage in taxes as our income goes up. What people may not necessarily realize is that we actually pay taxes at each one of these tax brackets along the way.
There are 12 states with zero or less income taxes such as Nevada.
Long-term capital gains are taxed using different brackets and rates than ordinary income.
|For Unmarried Individuals||For Married Individuals Filing Joint Returns||For Heads of Households|
|Taxable Income Over|
|Additional Net Investment Income Tax|
|3.8%||MAGI above $200,000||MAGI above $250,000||MAGI above $200,000|
|Source: “2020 Tax Brackets,” Tax Foundation and IRS Topic Number 559|
Qualified Business Income Deduction (Sec. 199A)
The Tax Cuts and Jobs Act includes a 20 percent deduction for pass-through businesses against up to $163,300 of qualified business income for single taxpayers and $326,600 for married taxpayers filing jointly (Table 7).
|Married Filing Jointly||$326,600|
|Source: Internal Revenue Service|
Annual Exclusion for Gifts
In 2020, the first $15,000 of gifts to any person is excluded from tax. The exclusion is increased to $157,000 for gifts to spouses who are not citizens of the United States.