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  2. How do tax brackets affect your tax refund or liability?

    Answered by verified global tax professionals
    Julian Alejandro Mejia Julian Alejandro Mejia community page Master 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 more
    Sidharth Gehlawat Sidharth Gehlawat community page CPA(US) · 6 years of exp

    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 more

    Disclaimer: 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.

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  3. 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.asp

    Tax 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…
     
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