“You might still be focused on surviving 2020, but when it comes to taxes, it doesn’t hurt to plan ahead. This month, the IRS released updates to the tax code for tax year 2021. Though actual tax brackets remained the same (10%, 12%, 22%, 24%, 32% and 35%), income limits for each bracket were increased to account for inflation. The standard deduction for 2021 was also increased.These changes will affect how much you pay when you file income taxes in 2022. Here’s a look at the 2021 tax brackets and other changes to personal taxes next year.Tax Brackets For Tax Year 2021Single filers: 10%: Up to $9,950 12%: Income of $9,951 to $40,525 22%: Income of $40,526 to $86,375 24%: Income of $86,376 to $164,925 32%: Income of $164,926 to $209,425 35%: Income of $209,426 to $523,600 37%: Income over $523,600 Married, filing jointly: 10%: Up to $19,900 12%: Income of $19,901 to $81,050 22%: Income of $81,051 to $172,750 24%: Income of $172,751 to $329,850 32%: Income of $329,851 to $418,850 35%: Income of $418,851 to $628,300 37%: Income over $628,300 Married, filing separately: 10%: Up to $9,950 12%: Income of $9,951 to $40,525 22%: Income of $40,526 to $86,375 24%: Income of $86,376 to $164,925 32%: Income of $164,926 to $209,425 35%: Income of $209,426 to $314,150 37%: Income over $314,150 Heads of household: 10%: Up to $14,200 12%: Income of $14,201 to $54,200 22%: Income of $54,201 to $86,350 24%: Income of $86,351 to $164,900 32%: Income of $164,901 to $209,400 35%: Income of $209,401 to $523,600 37%: Income over $523,600 Wondering about tax brackets for 2020? Take a look at them here.What Do The 2021 Tax Brackets Mean?Tax brackets are a way to ensure that the lowest-earning Americans aren’t forced to pay the same tax rate as higher earners. The U.S. follows a progressive tax system, meaning that portions of your income are taxed at different rates. So if you’re a single filer earning $80,000 per year, for example, you don’t actually pay 22% on that income. Instead, the first $9,950 of income is taxed at 10%. The next $9,951 to $40,525 of income is taxed at 12%. The last $39,425 of your income (income above $40,525) is what would be taxed at the highest rate of 22%.Add up all those tax amounts ($995 + $3,669 + $8,673.50), and you end up with a total tax liability of $13,337.50, or about 16.7%.To better understand how tax brackets impact your taxes for the year, there are a couple of numbers that are helpful to know. The first is marginal tax rate. This is the highest tax rate that you paid on your taxable income. In our example above, the highest tax rate on $80,000 in single-payer income is 22%.Next is your effective tax rate, which is the average tax you paid on all of your income. Going back to our example, if you paid a total of $13,337.50 on $80,000 of income, your effective tax rate is about 16.7%. So as you can see, just because you fall into the 22% tax bracket (your marginal tax rate) above, it doesn’t mean you actually pay a full 22% of your income in taxes.Also note that these tax brackets only apply your taxable income, which is what’s left over after subtracting your standard or itemized deductions, plus any other adjustments.Standard Deduction Increased For 2021In addition to updating income limits on tax brackets, the IRS also increased the standard deduction ― a flat dollar amount that decreases taxable income for everyone who doesn’t itemize.For individuals and married couples filing separately, the standard deduction for tax year 2021 increased by $150 to $12,550. For married couples filing jointly, the deduction increased by $300 to $25,100. Finally, for heads of households, the deduction grew by $150, up to $18,800 for 2021.
I Started Writing Porn During The Pandemic. Here’s How It Changed My Life.
46 Views0 Comments0 Likes
["Oscar Wong via Getty Images \"When I started this journey, I considered myself a writer. Now I realize I’m also a businesswoman.\" The lockdown began in Montreal on March 12. I was already in a state of personal cri...
Here’s Where The Term ‘Lame Duck’ Comes From
91 Views0 Comments0 Likes
[]["Tasos Katopodis via Getty ImagesAfter losing to Joe Biden, Donald Trump is considered a \"lame duck\" president.Following the election of former Vice President Joe Biden, President Donald Trump is in the “lame duc...
I Began Taking Prozac. Here’s What It Taught My Conservative Family About Mental Health.
159 Views0 Comments0 Likes
["Courtesy of Stacia Datskovska The author. In May I found myself curled up on the kitchen floor ― numb and crying. My mom stood beside me begging for me to stop. Eventually, when she realized I wouldn’t respond, she ...
Mary Trump: Here’s Why My Uncle Won’t Run For President Again In 2024
120 Views0 Comments0 Likes
["Mary Trump said the notion that her uncle, President Donald Trump, might run for a second term in 2024 is “preposterous.” “I think that this, initially, was probably an idea that was floated to him in order to assua...
Yes, I Will Be ‘Reaching Out’ To Trump Voters Now, And Again In 4 Years. Here’s Why.
0 Views0 Comments0 Likes
["Somewhere, in Indiana, my childhood pastor is sitting at his desktop computer posting fake news, memes and a slew of unchecked facts on his Facebook to a congregation of folks who righteously voted against my rights...
Black Friday Vs. Cyber Monday: Here’s The Real Difference
172 Views0 Comments0 Likes
[]["As the Thanksgiving weekend approaches, millions of Americans are getting ready to drop some cash. Included in the five-day holiday shopping extravaganza that spans Thursday to Monday are two of the biggest shoppi...
A Brain Infection Made Me Forget Nearly Everything. Here’s How I Became Myself Again.
233 Views0 Comments0 Likes
["Courtesy of Meghan Beaudry The author hugs one of her dogs in her apartment. I’ve forgotten many things in my life: my keys, the answers to test questions, my friend’s birthday. I never imagined I could forget how t...
Can COVID-19 Damage Your Teeth And Mouth? Here’s What You Should Know.
121 Views0 Comments0 Likes
[]["COVID-19 was once thought to mainly affect the lungs, but throughout the pandemic we’ve learned that’s certainly not the case.Everyone reacts to the coronavirus in different ways: Some people lose their taste and ...