“The effective tax rate is useful in planning and estimating the amount of taxes you need to withhold from your paycheck or pay through estimated taxes,” says Tracie L. Miller, a CPA and program chair at Franklin University in Columbus, Ohio. “It’s a quick, easy way to get a gener...
Typically, your MAGI (modified adjusted gross income) and AGI (adjusted gross income) are close in value to one another. However, the small adjustments that tweak your AGI into your MAGI could have an important bearing on your overall tax return. Do you pay taxes on AGI ...
The net pay formula subtracts an employee’s paycheck deductions from their gross pay. The net pay formula is: Gross pay - deductions = Net pay Post-tax deductions, such as voluntary deductions for additional life insurance or student loan payments, do not reduce taxable income. Two employees...
For example, my firm, Wellings Capital, acquired a 125-unit townhome community in 2017. We knew the water and sewer expenses were over 100% too high. Through ourdue diligence process, we discovered the culprits. To improve the situation, we planned to install water meters on individual uni...