As a result, the vast majority of people will be filing using the Standard Deduction, even if those who itemized in the past. The Standard Deduction is used by individuals and families who do not itemize or who have itemized deductions less than or near the Standard Deduction. Under the new tax law, many itemized deductions were eliminated or greatly limited while the Standard Deduction was increased. The Standard Deduction is an amount every taxpayer is allowed take as a deduction from their income to reduce their taxable income. $25,100 – Married filing jointly and surviving spouses Below are some of the most common deductions and exemptions Americans can take. In addition to the tax rates, the IRS upped many of the deductions and exemptions Americans use to lower their taxable income calculation, and therefore their taxes. The table provides the two most common filing statuses: Married Filing Jointly, and Single Individuals.įor those who file either Married Filing Separate or Head of Household, your tables are at the bottom of the article. Armed with your estimated taxes, you then have until December 2021 to make charitable contributions, invest for retirement, or do other things which can help manage and lower your tax liability.Īlso included in the table is the actual income taxes you will owe based on your income level. Understanding the tax brackets will help you to estimate your potential tax liability next year. (Numbers are rounded to the nearest dollar where needed.) Every tax bracket got a little bump up in size, allowing more of your money to be taxed at lower rates. The most common tax filing statuses are shown in the image for the 2021 tax brackets which you will use to calculate your taxes to be filed in 2022.
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