When talking about taxes, the issue of tax bracket often comes
up and it’s an important factor in deciding what tax options are
best for your situation. The problem is that the average person
probably doesn’t know which tax bracket they are in. Knowing
your tax bracket can be useful when trying to make decisions
that affect your taxable income each year. For example, if you
work a second job, sell some stock, or do a ROTH IRA conversion,
how much will you be taxed on these different scenarios? You
will have no clue unless you have know what tax bracket your
fall under. The easiest way to figure out your tax rate is to
grab last year’s tax return. Assuming you filed the standard
Form 1040, look at line 43 of the form. The number you see on
that line is your taxable income. Of course the big assumption
here is that your tax situation is quite similar this year as to
last year. However, if you expect a difference, you can add more
income to the number, or subtract new deductions you expect, to
arrive at an estim