Your marginal rate is the rate on the next dollar of income; your effective rate is total tax divided by total income. Planning decisions depend on the marginal rate.
Federal brackets are progressive, so a taxpayer in the 32 percent bracket pays that rate only on income above the bracket threshold, and a much lower rate overall. Long-term capital gains use separate rates.
Whether to realize a gain this year or next, or to take a deduction now, is a marginal-rate question. Capital gains.
Audits, penalties, collections, criminal exposure, and Tax Court, handled by attorneys who do this every day.
See the practice page →Our tax attorneys handle IRS audits, crypto tax, offshore disclosures, and opinion letters for clients nationwide. Consultations are confidential.
Definitions are general information, not legal advice, and may not reflect the most recent changes in law.
IRS letters, audits, unreported years, returns.
Foreign accounts, expats, offshore disclosure.
Audits, tax debt, criminal exposure, Tax Court.
Written analysis at a stated confidence level.
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