The IRS has released updated tax brackets for the 2021 filing season, these rates will be used to prepare your 2022 tax returns. The new brackets have been adjusted to account for inflation.
Taxpayers are divided into one of seven brackets ranging from 10% to 37% and those rates will be the same in 2021.
Single Filers
37% for incomes over $523,600
35% for incomes over $209,425
32% for incomes over $164,925
24% for incomes over $86,375
22% for incomes over $40,525
12% for incomes over $9,950
10% for incomes of $9,950 or less
Married couples filing jointly
37% for incomes over $628,300
35% for incomes over $418,850
32% for incomes over $329,850
24% for incomes over $172,750
22% for incomes over $81,050
12% for inccomes over $19,900
10% for incomes of $19,900 or less
Married couples filing separately
37% for incomes over $523,600
35% for incomes over $209,425
32% for incomes over $164,925
24% for incomes over $86,375
22% for incomes over $40,525
12% for incomes over $9,950
10% for incomes of $9,950 or less
The IRS has also increased the standard deduction — a flat dollar amount that reduces the amount of your income that’s subject to taxes — for 2021. For individuals and married couples filing separately, the deduction rose to $12,550, up $150 from this year. For married couples filing jointly, the deduction jumped to $25,100, an increase of $300.
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