Mar 23, 2021
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About this Deal
To keep as much of your funds as possible, it's important to pay attention to your 2020 tax bracket and federal tax rate. When you know which bracket and category you fall into, you should do what you can to reduce taxable income in a legal way.
Tax brackets are based on filing status and earned income, and determine how much money you'll either owe or receive in federal income tax refund. There are five tax filing categories, including individual, married filing jointly, married filing separately, head of household and eligible widow/widower.
There are ways to lower taxable income, including contributing to a retirement plan or 401(k). The earned income tax credit can also reduce tax owed or make you eligible for a refund. See below for a breakdown of the tax bracket for years 2020 and 2021 to get an idea of where you fall.
Federal Tax Brackets 2020 for Income Taxes Filed by May 17, 2021 (not complete list):
Federal Tax Brackets 2021 for Income Taxes Filed by April 15, 2022 (not complete list):
Read more here.
What do you think of the tax bracket breakdown? Let us know in the comments below!