There are seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. How do tax brackets work? Find out below as we're answering your top questions, which include how to get into a lower tax bracket. We're proud to be your tax guide to help make doing your taxes less stressful. Don't hesitate to reach out to our experts at IntentGen with any questions.
The U.S. tax brackets work where those who have higher taxable incomes pay higher federal tax rates. There are things to know about when it comes to tax brackets:
For additional information on tax brackets or preparing for your taxes, don't hesitate to reach out to your local tax expert in the Naperville and Chicagoland areas.
This is the tax rate that's paid on your last dollar of taxable income, which is often your highest tax bracket. For example, Single filers with $30,000 of taxable income are in the 12% tax bracket. However, if their income goes up by $1, they would also pay 12% on that extra dollar.
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