TurboTax 2019 - 2020 Tax Bracket and Tax Rate Guides
We look to TurboTax to answer the question, What is My Tax Bracket?
TurboTax Internet Answer:
Under the federal income tax system, different rates apply to different portions of your income. So people in, say, the 25 percent tax bracket don't actually pay 25 percent of their income in taxes; rather, the last dollar they earn is taxed at 25 percent.
TurboTax Video Tutorial of How Tax Brackets Work
TurboTax continues by explaining that we are on a progressive system, of marginal tax rates
In the United States our federal income tax is based on a progressive system, meaning that tax rates continue to increase as your taxable income goes up.
The example they provide is based on tax year 2017, where income was taxed at seven rates: 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent. These are marginal rates, which means that each rate applies only to a specific slice of you income falling within a specific tax bracket rather than to your total income. The rate that applies to the top slice "highest level" of your income is your tax bracket.
TurboTax Video Tutorial of How Tax Rates Work
Your taxable income is what matters when calculating tax brackets and tax rates
Tax brackets, tax rates, and income tax payments apply only to your taxable income . This is to say that your total income minus all your adjustments, exemptions and deductions is your taxable income.
TurboTax 2019 -2020 Internet Tax Bracket and Rate Tools and Guides
TurboTax Tax Bracket Calculator, this tool will allow you to calculate your tax bracket.
What is my tax bracket? TurboTax explains the progressive tax system.
What are income tax rates? TurboTax explains tax percentages.
What are 2019 tax rates? TurboTax discloses tax rates by filing status.
What are tax tables? TurboTax explains how to use the correct tax table and your income to determine your tax bill.
Federal Income Tax Reform. TurboTax Explains 2019 - 2020 tax reform changes and their effects on tax payers.
TurboTax offers a wealth of online tax filing information that can help each individual tax filer better understand the taxation system and how it effects them personally. With the ever changing tax laws, it can feel overwhelming at times trying to keep up with the annual modifications to our tax laws. Let TurboTax help you decipher all the complexity and keep you on the right track.
We update our website annually to keep the most current tax guidance at your fingertips. Please read up and enjoy!