Financial literacy education for the modern era.
Tax Basics
Understanding how taxes work helps you make smarter financial decisions. The U.S. uses a progressive tax system where higher income is taxed at higher rates.
Tax Bracket Calculator (2024)
$11,553
$63,447
22%
On next dollar earned15.4%
Overall tax burdenMarginal vs. Effective Rate
Your marginal rate applies only to income in that bracket. Your effective rate is your total tax divided by total income - always lower than your marginal rate.
Tax Deductions
Deductions reduce your taxable income. A $1,000 deduction in the 22% bracket saves you $220 in taxes. Standard deduction for 2024: $14,600 (single).
Tax Credits
Credits reduce your tax bill dollar-for-dollar. A $1,000 tax credit saves you $1,000 regardless of your bracket - more valuable than deductions.
Tax-Advantaged Accounts
401(k) and Traditional IRA contributions reduce taxable income now. Roth accounts use after-tax dollars but grow and withdraw tax-free.