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Understanding Tax Brackets for the 2019 Tax Year

Source: credit.com - Mar 5, 2020

When it comes to income tax, the more you make, the bigger percentage of your income you’re expected to pay. Behind that common concept are income tax brackets—a less common concept. A tax bracket is a range of taxable income amounts expected to pay the same tax rate or percentage.

There are seven federal income tax brackets for tax year 2019 (to be filed in 2020): 10%, 12%, 22%, 24%, 32%, 35% and 37%. In order to determine which tax bracket you are in, you also need to know your filing status. There are four main federal tax filing statuses: single, married filing jointly, married filing separately, and head of household.

Here’s a primer on federal tax brackets to help you understand what exactly you’re paying Uncle Sam.

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Category: General Business