The best passive income investments are the ones that are passive and can’t be taxed, says the Wall Street Business Journal.
But you should also be aware of the taxes you’re paying on these passive investments.
The WSJ’s retirement investing calculator uses data from the Tax Policy Center to determine what percentage of your passive income will be taxed.
It then uses the numbers to create an income-tax bracket calculator for you to use.
You can find out how much your tax bill will be in your particular state and the percent of your tax you’re liable for in your tax return.
The calculator will tell you how much you can save by choosing a passive income investment that can work for you.
Here’s how to calculate the tax rate on passive income.