2021 income tax brackets released: Where do you stand?

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DALLAS (NEXSTAR) — The Internal Revenue Service has released 2021 tax brackets, including inflation adjustments for the next year.

The IRS also boosted the standard deduction for a single taxpayer to $12,550. That’s an increase of $150 from this year.

Married couples could see a $300 increase with a joint deduction of $25,100.

There are seven marginal tax brackets. The IRS will tax different portions of your income at different rates.

Here’s how the 7 tax brackets will break down, according to CNBC:

  • 10% – Applies to individual taxpayers with income under $9,950 ($19,900 for married filing jointly).
  • 12% – Applies to individual taxpayers with income over $9,950 ($19,900 for married filing jointly).
  • 22% – Applies to individual taxpayers with income over $40,525 ($81,050 for married filing jointly).
  • 24% – Applies to individual taxpayers with income over $86,375 ($172,750 for married filing jointly).
  • 32% – Applies to individual taxpayers with income over $164,925 ($329,850 for married filing jointly).
  • 35% – Applies to individual taxpayers with income over $209,425 ($418,850 for married filing jointly).
  • 37% – Applies to individual taxpayers with income over $523,600 ($628,300 for married filing jointly).

These 2021 figures will impact your 2022 filing.

After deductions and adjustments, here’s how the marginal tax rate would work for an individual taxpayer with $75,000 of taxable income.

Income between $0 and $9,950 will be taxed at 10%. Everything earned from $9,950 to $40,525 will be taxed at 12%. The tax rate then moves to 22% for everything earned between $40,525 and $75,000.

That would mean $995 in taxes during the first bracket, $3,669 during the second bracket and $7,584 for income collected in the third bracket, equating to $12,248 in taxes paid by someone who earned $75,000.

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