2022 tax year, there are seven federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your tax bracket is determined by your filing status and taxable income.
Tax brackets were created by the IRS to implement America’s “progressive” tax system, which taxes higher levels of income at the progressively higher rates we mentioned earlier. The brackets help determine how much money you need to pay the IRS annually.
The amount you pay in taxes is dependent on your income. If your taxable income increases, the taxes you pay will increase.
But figuring out your tax obligation isn’t as easy as comparing your salary to the brackets shown above. For example, if you’re single and your 2022 taxable income is $50,000, not all of that will be taxed at 22%, the top bracket for a single person making $50,000. Some of that will be taxed in lower brackets. need more information please call us at 7186009625 and visit: www.mahreentax.com
