Sentences with phrase «means at your marginal rate»

When he says «taxed at 100 %» I think he means at your marginal rate.)

Not exact matches

Because your deduction reduces the amount of income taxed at your highest marginal rate, this calculation works in most situations since taking the deduction means you have less income being taxed at the highest rate you pay.

It means looking at the complete tax system (the rate structure, the child care expense deduction, the working income supplement, the child tax benefit, among others) and how it penalizes low - and middle - income families with high punitive marginal tax rates.

This means that these gains will be taxed as ordinary income, and shareholders will be taxed at the rate equal to their highest marginal tax rate.

In most cases described above, the marginal tax rate is lowered which means the income is still taxed — but at a lower rate.

Never mind that $ 5000 a year for 20 years earning just 4 % means just less than $ 150,000 in tax - free money — $ 16,000 more than you'd have if you were paying tax at a marginal tax rate of 31 %.

This means that the rates remained at 10 %, 15 %, 25 %, 28 %, 33 %, and 35 % for taxpayers coming from the middle class, while increasing the top marginal rate.

Assuming that Mr. McGuinty agreed to this trade, the province's highest marginal rate on personal income would rise, federal and provincial rates combined, from 46.4 per cent to 49.4 per cent — meaning that this rate would theoretically net $ 247,000 in revenue, a tax increase for the top 1 per cent of at least $ 15,000.

Where the payments are outside the allowable limits, it also means all payments made during the financial year will be treated as a lump sum and taxed at the individual's marginal tax rate, unless the payments are unrestricted non-preserved benefits.

Boosting the inclusion rate to 75 % would mean that only 25 % of your capital gains from the sale would be tax - free and the remaining percentage would be taxed at your marginal tax rate the year of the sale.

What I mean is that when an investor holds XSP in a taxable account, any dividends received are treated as ordinary income and taxed at marginal rates.

«Many people wrongly confuse marginal tax rate with total tax rate; as you get pushed into a higher tax bracket, that doesn't mean all your income is taxed at that rate,» Charney said.

That usually means equities, since dividends from Canadian stocks are eligible for a generous tax credit (foreign dividends are not), and you only have to pay tax on 50 % of your capital gains at your marginal rate.

If the individual retires early and takes the money out, their earned income will likely be lower (maybe the 15 % marginal tax bracket), which would mean the 401 (k) withdrawals would be taxed at a lower rate.

And once again, income at that point would be subject to a 33 % tax bracket, which means the marginal tax rate impact of PEP is 3.2 % x 33 % = 1.06 %.