Join Earl Kay Stice for an in-depth discussion in this video Income tax summary, part of Accounting Foundations.
Let me summarize our discussion of income taxes.…First there's a notion of the tax bracket.…Income is taxed in chunks.…The first part of income in almost every tax system…around the world is not taxed at all,…so that's a zero percent tax bracket…and your income after that is chopped up into pieces.…This piece is taxed at one rate.…The more money you make, the higher different pieces are…taxed the higher rate, so that's the notion of the tax bracket…and the important thing to remember is this.…Income in the low tax brackets…is never taxed at a higher rate, ever.…
In our simple system, that first $50 is never taxed at…anything other than a zero percent tax rate.…Same thing in the United States,…the income that's excluded from taxation under your…personal exemptions, the standard deduction…is never taxed.…It's in a zero percent tax bracket.…So don't be afraid of making more money…and going up in the next tax bracket because that…first amount of income is never taxed at higher rates.…We also discussed the notions of the…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
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