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How do tax brackets affect your tax refund or liability?
Answered by verified global tax professionalsJulian Alejandro MejiaMaster of Science Taxation, CPA (US) · 4 years of exp
Most of your income will be divided and placed into different brackets that have progressive tax rates. T...Read moreSidharth Gehlawat
Any time your income changes, your tax bracket may change as a result. After a tax bracket change, it is a good idea to reexa...Read moreDisclaimer: Opinions are from external tax professionals and should not be considered as Microsoft’s opinion or a substitute for professional help. Consult a tax professional for advice.
- Tax brackets refer to a range of incomes subject to a certain income tax rate1. There are seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%2. Tax brackets are adjusted each year to account for inflation2. Your taxable income and filing status determine which tax brackets and rates apply to you2. The tax brackets for 2021 are as follows3:
- 10%: $0 to $11,000
- 12%: $11,001 to $44,725
- 22%: $44,726 to $95,375
- 24%: $95,376 to $182,100
- 32%: $182,101 to $231,250
- 35%: $231,251 to $346,875
- 37%: $346,876 or more
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A tax bracket refers to a range of incomes subject to a certain income tax rate. Tax brackets result in a progressive tax system, in which taxation progressively increases as an individual’s income grows. Low incomes fall into tax brackets with relatively low income tax rates, while higher earnings fall into brackets with higher rates.
www.investopedia.com/terms/t/taxbracket.aspTax brackets are adjusted each year to account for inflation. This can help prevent a taxpayer from paying higher taxes as the cost of living increases. There are seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your taxable income and filing status determine which tax brackets and rates apply to you.
www.nerdwallet.com/article/taxes/federal-income-t…- 10%: $0 to $11,000
- 12%: $11,001 to $44,725
- 22%: $44,726 to $95,375
- 24%: $95,376 to $182,100
- 32%: $182,101 to $231,250
- 35%: $231,251 to $346,875
turbotax.intuit.com/tax-tips/irs-tax-return/what-are-t… - People also ask
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- There are seven federal income tax brackets, ranging from 10% to 37%. Your tax bracket is determined by your taxable income and filing status. The 2022 and 2023 tax brackets remain unchanged but the thresholds that inform those tax brackets are adjusted annually for inflation.
- Estimated Reading Time: 3 mins
- Published: Jan 25, 2018
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