What Tax Bracket Am I In?

There are seven federal tax brackets, with each bracket containing a range of incomes that would be taxed at that rate. These can change from year to year. 

Effective Tax Rate Vs. Marginal Tax Rate

The percentages listed in the tax chart — 10%, 12%, 22%, 24%, 32%, 35% and 37% —are called “marginal tax rates.”  

Tax deductions can reduce the amount of income upon which taxes are owed. So, if a person’s tax bracket was 24% and a $500 deduction applies, that saves that person $120 in taxes. 

Deductions And Tax Credit

Investors may need to pay taxes on stocks held in their investment portfolios. 

Paying Taxes On Stock

Long-term capital gains, meanwhile, aren’t taxed for single filers making $40,000 or less or married couples who are filing jointly and made $80,000 or less.  

Long-Term Capital Gains

Swipe Up to read more!