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Effective Tax Rate: How To Calculate The Amount Of Taxes You Really Pay


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It’s safe to say that many Americans are a bit fuzzy on how taxes work and how much they actually pay.
A 2018 Gallup poll, for instance, found that 45% of respondents said they believe they pay too much in federal income taxes. Interestingly, however, approximately 47% of Americans don’t pay any federal income taxes.
You probably do know that the more money you earn, the higher the rate at which you are taxed. That’s because the U.S. follows a progressive tax system, in which different levels of income correspond to tax brackets of various rates. According to 2021 brackets, current income tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%. ....

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How to Know If You Qualify for the Earned Income Tax Credit


The earned income tax credit offers up to $6,660 for qualified filers yet too many Americans don’t seem to know about it. While 25 million Americans qualify, the IRS says that only 20% of them claim the credit on their federal tax return. Here’s a look at why and whether you’re leaving cash on the table.
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How does the earned income tax credit work? 
The earned income tax credit (EITC) is primarily designed to provide financial assistance to working families with children. For the tax year 2020, filers can qualify for:
A $6,660 credit if you make less than $56,844 and have three kids. ....

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Treasurer Davis Named to National Board to Help Families Save for Education


The College Savings Plans Network (CSPN) has nominated and confirmed Delaware State Treasurer Colleen Davis to its Executive Board. An affiliate of the National Association of State Treasurers (NAST), the CSPN brings together state officials who administer 529 savings plans which offer federal and state tax benefits for people to save for a child’s education. The group offers convenient tools and objective, unbiased information to help families make informed decisions about education savings.
“The cost of a quality education can take a major toll on families and that’s why I’m honored to be part of a group that can truly help,” said Treasurer Davis. “Our goal is to create awareness, understanding, and use of 529 plans to empower families to save for education.” ....

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