tax bracket


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Related to tax bracket: Marginal Tax Bracket

Tax bracket

The percentage of tax obligation for a particular taxable income.
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Marginal Tax Rate

A percentage of one's income that one must pay in taxes. Marginal tax rates vary according to income levels. One who makes $100,000 per year has a higher marginal tax rate than one who makes $25,000. However, the marginal tax rate does not increase for one's entire income, merely each dollar over a certain threshold. Suppose one pays 10% of one's income up to $25,000, and 20% thereafter. The taxpayer making $25,001 does not suddenly have to pay 20% of his/her entire income, only on the one dollar over $25,000. That is, he/she owes 10% of $25,000 ($2,500) and 20% of the $1 over that (or $0.20). All things being equal, this taxpayer owes $2,500.20 in taxes.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

tax bracket

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Tax bracket.

A tax bracket is a range of income that is taxed at a specific rate.

In the United States there are six brackets, taxed at 10%, 15%, 25%, 28%, 33%, and 35% of the amount that falls into each bracket.

For example, if your taxable income was high enough to cross three brackets, you'd pay tax at the 10% rate on income in the lowest bracket, at the 15% rate on income in the next bracket, and at the 25% rate on the rest.

The rates remain fixed until they are changed by Congress, but the dollar amounts in each bracket change slightly each year to adjust for inflation.

In addition, the income that falls into each bracket varies by filing status, so that if you file as a single taxpayer you may owe more tax on the same taxable income as a married couple filing a joint return.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

tax bracket

The highest marginal tax rate to which a person or estate will be subject.Income taxes and estate taxes are calculated as a percentage of adjusted gross income, but the percentage increases as income increases. One's income is divided into brackets with an upper and lower limit to each bracket;the income within the bracket is taxed at its appropriate percentage rate,and then the next bracket is taxed at a higher percentage rate. See marginal tax rate.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Tax Bracket

The rate at which income at a particular level is taxed.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
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What's more, the outcomes reveal that the Palestinian natural taxpayer is not satisfied with the income tax brackets and rates, income tax exemptions, and income tax deductions based on the Palestinian income tax law No.
The exact income thresholds of each tax bracket depend on your filing status, but if you're a married couple filing a joint tax return, here's how it would work in 2019.
A will owe tax of $430 on this $4,300 since the entire amount fits within the 10% single tax bracket amount of $9,525.
In addition, there has been limited examination of the role that tax brackets have on tax revenues.
This bodes well for the vast majority of clients for whom getting to the 0% tax bracket is a realistic goal.
Another 17 per cent items are in 12 per cent tax bracket, 43 per cent in 18 per cent tax slab and only 19 per cent of goods fall in the top tax bracket of 28 per cent.
However, when tasked with guessing my second favorite tax bracket, very few succeed.
If you are in the 28% marginal tax bracket in retirement and you withdraw that $25,000, you will pay 28% ($7,000) in taxes.
This is where a taxpayer goes from a 15 percent to 25 percent tax bracket. That is a 66 percent increase.
It includes different tax brackets, exemption numbers (2, 4, and 6), and two distinct assumed itemized deduction amounts ($10,000 and $8,000) that are below the standard deduction amount ($12,400).
THE new pension freedoms that come into operation in April next year could push lots of us into higher-rate tax brackets.
Basically, income smoothing strategies involve (1) reducing taxable income in high-income years by maximizing deductions and shifting income to lower-income years; and (2) increasing income in low-income years by deferring deductions and increasing taxable income to fill up the lower tax brackets. Put another way, the idea is to "fly below the radar," i.e., to keep taxable income below the 3.8% net investment income tax applicable threshold level, and, if that is not possible, to keep taxable income below the PEP and Pease applicable threshold, and, if that is not possible, to keep taxable income below the 39.6% tax bracket.