Knowing the tax bracket you belong to is very important as it can help one plan their finances accordingly. Knowing the bracket you belong to is not a hard task as all you have to do is start by knowing the amount of income you get that is taxable. One needs a copy of the tax return to determine this. Here, you will find a listing of the money you have earned known as gross income. Skip this and go all the way down to get the taxable income. This is usually the amount that is left after all the deductions have been made from the adjusted gross income.
Next, one needs to find put their filing status. This is because the tax schedule that a person uses normally depends on the whether they have filed separately or jointly or whether they have signed as a single tax payer or a married one. After this, you need to find the tax schedule that suits you best. One can also get this information from the IRS (Internal Revenue Service) website where you will find a list of tax schedules to choose the one that applies with your situation to help you know the tax bracket you belong to.
Once you have done this, use the tax schedule to find the biggest number less that the taxable income. For instance, if a single person has a taxable income of $ 35,000 the figure to use is $ 32,500 to $ 78, 650. The other amount above taxable income is taxed at a rate of 25% which is the bracket you belong to. You can also estimate the tax bracket for the whole year by using the above steps and coming up with an average of the total amount of income for the whole year and take away the deductions. This will help you know the bracket you fall into easily.
Next, one needs to find put their filing status. This is because the tax schedule that a person uses normally depends on the whether they have filed separately or jointly or whether they have signed as a single tax payer or a married one. After this, you need to find the tax schedule that suits you best. One can also get this information from the IRS (Internal Revenue Service) website where you will find a list of tax schedules to choose the one that applies with your situation to help you know the tax bracket you belong to.
Once you have done this, use the tax schedule to find the biggest number less that the taxable income. For instance, if a single person has a taxable income of $ 35,000 the figure to use is $ 32,500 to $ 78, 650. The other amount above taxable income is taxed at a rate of 25% which is the bracket you belong to. You can also estimate the tax bracket for the whole year by using the above steps and coming up with an average of the total amount of income for the whole year and take away the deductions. This will help you know the bracket you fall into easily.
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