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Mar 23, 2021
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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):
  • 10%: Single-$0 to $9,875; Married Jointly/Widow(er)-$0 to $19,750; Married Separately-$0 to $9,875; Head of Household-$0 to $14,100
  • 24%: Single-$85,526 to $163,300; Married Filing Jointly/Widow(er)-$171,051 to $326,600; Married Filing Separately-$85,526 to $163,300; Head of Household-$85,501 to $163,300
  • 37%: Single-$518,401 or more; Married Filing Jointly/Widow(er)-$622,051 or more; Married Filing Separately-$311,026 or more; Head of Household-$518,401 or more
  • See More 2020 Tax Brackets

Federal Tax Brackets 2021 for Income Taxes Filed by April 15, 2022 (not complete list):
  • 10%: Single-$0 to $9,950; Married Filing Jointly/Widow(er)-$0 to $19,900; Married Filing Separately-$0 to $9,950; Head of Household-$0 to $14,200
  • 24%: Single-$164,926 to $209,425; Married Filing Jointly/Widow(er)-$172,751 to $329,850; Married Filing Separately-$86,376 to$164,925; Head of Household-$86,351 to $164,900
  • 37%: Single-$523,601 or more; Married Filing Jointly/Widow(er)-$628,301 or more; Married Filing Separately-$314,151 or more; Head of Household-$523,601 or more
  • See more 2021 tax brackets

Read more here.

What do you think of the tax bracket breakdown? Let us know in the comments below!
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💬 3  Comments

Thanks! Worked! 👍 🙏 🤩 💕 🥳 🔥 😍
stewartcherek (L3)
Mar 25, 2021
Thanks! 😊
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shalini31 (L2)
Mar 24, 2021
🔥 🔥
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prince16pream (L3)
Mar 24, 2021
👍 👍
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