![]() This means whichever tax bracket you’re “in”, its rate won’t apply to your entire income unless your taxable income ends in the lowest bracket. Each chunk of income-income in a tax bracket-shows the percentage of tax you pay on that portion of your income. This has you pay a greater rate of tax on each successive chunk of income. $161,219 plus 37% of the amount over $539,900Ī progressive tax system means that tax rates increase as your taxable income goes up and your income enters a higher tax bracket. What are the 2022 federal income tax brackets? ![]() Head of Household filing status If taxable income is over: Married Filing Separately filing status If taxable income is over: Married Filing Jointly or Qualifying Widow (Widower) filing status If taxable income is over: Single filing status If taxable income is over: What are the 2021 federal income tax brackets? These are marginal rates, meaning that each rate applies only to a specific slice of income, rather than to your total income. TurboTax Tip: Ordinary income is taxed at seven different rates: 10, 12, 22, 24, 32, 35 and 37 percent. For example, the brackets below show the first tax bracket if you are filing as single is from $0 to $9,950 with a tax rate of 10%. In 2021 there are seven tax brackets with each one having a different tax rate ranging from 10% to 37%. The brackets used to calculate your income tax depend on your filing status.
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