What Are The Government Tax Brackets?
Under the current US tax code there are 6 different tax brackets that individuals can fall under (there is a slightly different system for corporations). The current possible government tax rates are 10%, 15%, 25%, 28%, 33%, and 35% with those who make the least amount of money paying the lowest rate. Of course, there are a number of complexities within the system and it is never as clear cut as it may seem. That is to say, people pay different percentages of their income based on how much they make. These different percentages are referred to as government tax brackets, and they are very important to how much money you are going to pay in Government taxes each year.
The government tax brackets may seem like an iron clad solid system, but there are a number of ways to pay less
taxes than the tax bracket would indicate. The most common escape from the system is when couples file their taxes jointly. When this is done, the couple generally pays a much lower percentage of their money into the government. There are also provisions written in that allow you to write off certain expenses and donations from your taxes. This means that you get to subtract that amount of money from the amount that you owe in taxes. Naturally, there are many rules in place that govern what can and cannot be written off.
The system is important to be aware of because you need to know how much you are going to owe in taxes each year. In some cases it may actually be to your benefit to make slightly less money if you are on the borderline into crossing into a new tax percentage.Source: www.taxforuminfo.com