To attract new customers, some banks may sweeten the deal by offering a cash bonus for opening a new account. Often, these bonuses can be a few hundred dollars. But it's not entirely free money. New bank account bonuses often come with their own set of terms and conditions, as well as tax implications. Let's take a closer look. How are bank account bonuses taxed? Bank bonuses often require you to meet certain conditions to qualify. For example, you may need to set up a monthly direct deposit of at lea ...

When you’re planning for taxes, it’s helpful to know both your marginal tax rate and your effective tax rate. Marginal tax rate is the percentage you pay in taxes on the last dollar you earn, while effective tax rate is the average tax rate you pay overall to the federal government. The difference between the two may not seem important, but understanding how each one is calculated is vital to understanding our tax system — and your own bill. What is a marginal tax rate? Marginal tax rate is the percenta ...