Taxes and tax rates, they are inevitable! Every year I sit down to ponder my new years goals and how paying taxes can eat into my annual income substantially.
By calculating my tax rate for each of the tax brackets I fall into, I can determine how deep Uncle Sam is going to dig into my pockets.
Federal Tax Brackets Calculator
Every year our government sits down to reflect on how screwed up they have rendered our economy, along with our ever escalating national debt, Yikes!
This in turn gives them motivation to dump that burden back on the American taxpayers with higher tax rates.
Therefore, tax brackets along with tax rates are adjusted each year to account for the economies fluctuation, and help cover our debt load.
Income Tax Brackets and Rates Calculator
The United States Tax System is set up to "supposedly" tax higher income earners at higher tax rates. However, our greedy government is governed themselves by special interest money from big business to insert loopholes into the tax code that in turn benefit these companies by lowering the amount of taxes they pay.
Mean while the American tax pay is left to calculate their income taxes and pay up on more stringent tax filing guidelines.
How Tax Brackets And Tax Rates Work
As you can see with our tax brackets calculator above, when your income increases into each tax bracket, that portion of your income that falls within the next tax bracket is taxed at the higher corresponding tax rate, based on the IRS tax filing status you choose.
Our Tax bracket and tax rates calculator above shows you first hand how these tax brackets relate to the corresponding federal income tax rates.
Fact is, you can be pretty much taxed right out of you're comfort zone if you don't apply tax breaks to help lower your overall taxable income.
Tax deduction are a great way to lower your taxable income and reduce the number of tax brackets you climb into. I'm not one to pry, but if your not taking advantage of tax breaks, you're most likely paying more taxes than you should be.