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Welcome to this session of grand rounds, a collection of posts I have discovered in the blogosphere and have found of interest and hope you do too.
This offering of Grand Rounds looks at articles from around the web that deal with taxation.
Many stocks repay their investors by distributing dividends.
Unfortunately this is a taxable event.
Dividends can be categorized as qualified or not.
What’s the big deal?
Well as a taxpayer you want to pay the least amount of tax as possible which makes qualified dividends far more appealing than non-qualified dividends.
Dividend Power shares a lot of insight on what makes a dividend qualified or not and the tax implications that occur with each one in, “Dividends And Taxes.”
People sometimes fear that making more money will cause them to go into a higher tax bracket and have all their earnings taxed at that higher rate.
Fortunately this imagined tax financial cliff does not exist.
It is only the dollars over the lower limit of each tax bracket that gets taxed at that rate.
Therefore your marginal tax rate is not your true, or effective, tax rate.
White Coat Investor has a great discussion helping people understand how the tax code is set up in, “2021 Tax Brackets-How They Actually Work.”
Very wealthy people have the ability to analyze the tax code and find creative ways to lower their tax hit.
Fortunately you do not have to be a billionaire to take advantage of some potential tax savings, especially if you do indeed retire early.
There is a golden period from when you stop earning income and when you have to take Required Minimum Distributions (RMD) from your tax deferred accounts.
FI Physician shows you the way in, “The Tax Planning Window For Retirement.”
A physician’s salary typically puts him or her in a higher, if not highest tax bracket.
Because wealth is created from what you keep and not what you pay it is important to reduce the amount you owe to the IRS each year.
Financial Residency shares some details on how to do so in, “How Physicians Can Pay Less Tax.”
Most physicians do not like to discuss their income, especially on a public forum.
Even rarer are those physicians that are willing to share their actual tax return.
Well Physician On Fire is truly a rarity in the physician blogging world as he does just that in, “Our 2019 Tax Return Revealed: Total Income $522,662, Taxable Income $253,906.”
Hope you enjoyed the reading material.
Have a great rest of the week.
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