Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax ...

Internal Revenue Service tax rate schedules work as a progressive income tax structure, taxing different levels of income at different rates. As your income rises, the amount you earn over a certain ...

Knowing your effective tax rate can help you understand how well you’ve been managing your tax situation throughout the year. Your effective tax rate is different from your tax bracket. It’s the ...

When you process payroll, not only are your employees subject to tax withholding, but your business must pay employer contributions to Social Security, unemployment insurance and Medicare. Most ...

It’s smart to calculate your effective tax rate each year to make adjustments to your withholding amount and budget for the year ahead. Your tax preparer may provide you with your effective tax rate, ...

Text Callout : Key Takeaways - How to Calculate Your Effective Tax Rate Your effective tax rate is a good indicator of how well you’ve been managing your tax situation. It’s smart to calculate your ...

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Pre-tax profit is a firm's income before taxes, found on the income statement. Calculate pre-tax profit by adjusting net income for the effective tax rate. Alternatively, adjust operating income by ...

Examine company's annual bond interest. Add pre-tax interest adjustments found in cash flow statements to get pre-tax figures. Calculate pre-tax debt cost using company's effective tax rate for ...