What are the different tax brackets for 2020 taxes?
It is never too early in the year to start thinking about your taxes. In fact, the sooner you can form a plan for how to manage your finances for the tax season, the better. With careful planning, you can grow your wealth while minimizing your tax liability, which reduces how much you may end up owing to the federal government in taxes.
One of the most important aspects of tax preparation is to understand the different tax brackets. The tax brackets represent different income levels and how much they are responsible for owing in taxes based on that income. Knowing which tax bracket you are likely to fall under is a big first step in the rest of your tax preparation.
What are the different tax brackets for 2021 taxpayers?
If you are wondering what you may be responsible for in paying your 2021 taxes, please refer to the table below to get an idea of what you could owe based on your tax bracket:
|Tax rate||Single||Married Filing Jointly||Married Filing Separately||Head of Household|
|10%||$0 to $9,950 ||$0 to $19,900 ||$0 to $9,950||$0 to $14,200 |
|12%||$9,951 to $40,525||$19,901 to $81,050 ||$9,951 to $40,525||$14,201 to $54,200 |
|22%||$40,526 to $86,375||$81,051 to $172,750 ||$40,526 to $86,375||$54,201 to $86,350|
|24%||$86,376 to $164,925||$172,751 to $329,850||$86,376 to $164,925||$86,351 to $164,900 |
|32%||$164,926 to $209,425||$329,851 to $418,850 ||$164,926 to $209,425||$164,901 to $209,400 |
|35%||$209,426 to $523,600||$418,851 to $628,300 ||$209,426 to $314,150||$209,401 to $523,600|
|37%||$523,601 and higher||$628,301 and higher||$314,151 and higher||$523,601 and higher|
Talk to a ProVise CFP® professional about managing your personal financial plan
Maintaining a personal financial plan is an important part of not only preparing for the tax season, but also for living comfortably and saving enough for your retirement and other long-term goals. Juggling all these aspects of your finances can be difficult, especially when it comes to avoiding penalties for early withdrawals from your retirement accounts or incorrectly filing your taxes.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about building a personal financial plan? Contact ProVise today to schedule a complimentary consultation.