Tax time!

 

Tax brackets refer to different income categories where taxpayers are taxed at different tax rates. The United States has a progressive tax system, which means that the more money you make, the higher your tax rate. 

Here are the current tax brackets for the 2021 tax year:

- 10% of taxable income up to $9,950 for individuals and married filing separately

- 12% of taxable income up to $9,951 for single filing separately and married filing separately

- 22% of taxable income $40,526-$86,375 for single and married filing separately

- 24% of taxable income $86,376-$164,925 for single and married filing separately

- 32% of taxable income $164,926 - $209,425 for individuals and married filing separately

- 35% of taxable income $209,426 - $523,600 for individuals and married filing separately

- 37% of taxable income for income over $52360 for married and married couples . separately


Married couples filing jointly usually have twice the income for each tax category as single filers. It's important to note that these tax brackets apply to your taxable income, which is your income after deductions and exemptions.Finally, understanding tax brackets is important to determining how much income tax you owe the government. Knowing which tax bracket you fall into will help you better plan and budget for your taxes each year..

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