Taxpayers in the United States are divided into seven brackets. The entire classification has been done on the basis of their taxable income. Citizens with the lowest taxable income are charged 10%, followed by 12%, 22%, 24%, 32%, 35%, and 37%.
Since the U.S tax system follows the pattern of arithmetic progression, the taxable amount increases as income increases. But, citizens from the highest tax bracket are not required to pay their taxes on the highest bracket on all their income.
What Is The Revised Tax Rate?
There have been no changes in the number of tax slabs. But, the overall tax rates have been reduced. For example, married couples with an annual income of USD 80,000 were earlier required to pay their taxes abiding by the norms of the 25% tax bracket. But now, they are levied just 22%. Get in touch with us immediately if you don’t want to get confused while filing your return.
How Can You Take Advantage Of The Revised Tax Slabs?
One simple tip to take advantage of the new tax rate is – maximize the tax-advantaged accounts and get as many deductions as possible. The new tax law has doubled the standard deduction, which helps save a lot of tax.
If you are self-employed, then make sure to get the most out of all our expenses, including mileage. You can even try using mileage tracker for this purpose.
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