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Tax brackets are one of the most commonly misunderstood aspects of taxes in America. News reports about taxes often do little to clear up those misunderstandings, sometimes making it seem that people are going to owe a much larger portion of their income to taxes than they actually do.
Tax brackets aren't that difficult to understand, particularly if you can visualize a multi-tiered water fountain in your head. Let's dive in.
Bracket | Taxpayers filing single | Married taxpayers filing jointly | Explanation |
10% | Up to$9,950 | Up to$19,900 | A single file taxpayer will only pay 10% of their income up to$9,950. |
12% | $9,951
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