The Propeller – The 10 Shawnmandments & Tax Brackets: Finding Joy Between the Deductions! – 10-28-2024

With the “Tax Cut & Jobs Act” (the tax reform first implemented in 2018 – Thank you Donald Trump!), the 2024 and 2025 tax brackets have all been heavily revised from pre-reform levels. Barring new legislative changes, these altered tax brackets will continue through the 2025 tax year and then revert back to prior levels in 2026, unless they are extended.

How Tax Brackets & U.S. Federal Tax Rates Work
In the tax rate tables below, it is important to note that the highlighted rates represent the income tax rate owed for the portion of your taxable income that falls into that tax bracket (after subtracting the greater of your itemized or standard deductions). As an example (for 2024), if you are single (unmarried) filer and your taxable income is $75,000, your tax rate on your first $11,600 of taxable income is 10%, taxable income over $11,600 up to $47,150 is taxed at 12%, and taxable income over $47,150 to $75,000 (your income) would be taxed at 22%.

Many taxpayers incorrectly assume, for example, that if your total income peaks within the 35% tax bracket, then all of your income is taxed at that rate. This is not the case. The United States federal income tax system is a “progressive” tax system, which means that your effective (actual) overall tax rate is less than the tax rate for income that falls in the top bracket that you are in. In other words, income is taxed in steps, or brackets. With that said, let’s take a look at the tax brackets:
 

Next week, we’re diving into Capital Gains Tax rates! Discover why letting your investments work for you – instead of you working for a paycheck – can be a game-changer for your wallet. I’ll show you how holding onto your stocks could mean paying significantly lower taxes on your earnings. Don’t miss this insight on keeping more of what you’ve earned!

Did you know your ceiling fan can help keep your home warmer in the winter? By reversing its direction, you can make the most of your heating and save on energy costs. Here’s how it works:

During winter, switch your fan to rotate clockwise at a low speed. This pulls cool air up and pushes warm air, which naturally rises, down along the walls and back into the room. This creates a more even temperature, letting you feel warmer without cranking up the heat. It’s a small adjustment that can make a noticeable difference in your comfort and your energy bill!

In today’s digital age, staying vigilant against online scams is more important than ever. One of the newer and more insidious tactics scammers employ is known as “email bombing,” which can easily leave even the most cautious individuals vulnerable to financial fraud.
 

What is Email Bombing?

Email bombing is a tactic where a scammer floods a victim’s inbox with a barrage of seemingly legitimate emails. These emails often appear to come from well-known government agencies or reputable organizations. The goal? To overwhelm the recipient and distract them from a crucial email—usually one that contains important financial information, such as a withdrawal confirmation from their bank or service provider.

How the Scam Works

1. Distraction: When a victim receives dozens of emails that look legitimate, they may feel compelled to sift through them. In the chaos, they might miss a single email that actually requires immediate attention, such as a notification about unauthorized account activity.

2. Legitimacy: The emails may come from actual agencies or companies, but they typically contain misleading information or links that can lead to phishing sites. The sheer volume of these messages makes it difficult to discern which ones are genuine.

3. Targeted Action: Once the victim eventually discovers the critical email—often a withdrawal notice from their financial institution—they may be too late to take action if they’ve already missed the window for cancellation or reporting fraud.

How to Protect Yourself

1. Stay Informed: Understanding common scams like email bombing is your first line of defense. Knowledge is power, and being aware of these tactics can help you stay alert.

2. Verify Email Sources: If you receive an unexpected email from your bank or service provider, always verify it through a separate channel. Don’t click on any links or provide personal information until you’re sure the email is legitimate.

3. Use Spam Filters: Enable robust spam filtering on your email account to help minimize the number of unsolicited emails you receive.

4. Check Accounts Regularly: Regularly monitor your bank and HSA accounts for any unauthorized transactions. Quick action can prevent financial loss.

5. Report Suspicious Emails: If you encounter a suspicious email, report it to your email provider and the organization being impersonated. This helps combat the issue for everyone.

Email bombing is a clever but harmful scam designed to exploit your trust and attention. By staying informed and vigilant, you can protect yourself from falling victim to this deceptive tactic. Remember, when it comes to your finances, it’s always better to be safe than sorry. Take the time to verify any unexpected communications, and don’t hesitate to take action if something seems amiss. Your financial security depends on it.