How Federal Income Tax Works
The U.S. uses a progressive tax system with seven brackets. You only pay each rate on the income that falls within that bracket, not on your entire income. The standard deduction reduces your taxable income before brackets are applied.
Standard Deductions
- Single: $15,000
- Married Filing Jointly: $30,000
- Head of Household: $22,500
These are the projected amounts for the current tax year. If you itemize deductions and they exceed the standard deduction, your taxable income may be lower.
Related Tools
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