$120k vs. $200k - What Your Taxes May Look Like | Ep. 17

Ever wonder why your tax refund may change so much from year to year or why making a little more money doesn’t always feel like it pays that much extra?

In this episode of Common Curiosities: Retirement, Michael CFP® and EA breaks down how our progressive tax system actually works, using everyday language (and a few buckets of water).

We walk through side-by-side examples of a married couple earning $120,000 and $200,000 to see how their tax bill may look, what tax deductions they may get (or not get) and even look at planning around certain tax credits.

You’ll learn:

💧 How each “bucket” of income gets taxed differently

💡 The difference between marginal and effective tax rates

👶 How credits may reduce your tax bill (and when some begin to phase out)

💭 Why tax planning can be valuable and should align with your investment and retirement planning

It’s a practical, down-to-earth look at how the numbers actually stack up hopefully understandable as well.

Because good financial planning isn’t just about investing… it’s about knowing how taxes, savings, and long-term goals all fit together like ingredients in a recipe that works for you.