Federal Government And The Internal Revenue Service

911 WordsFeb 2, 20164 Pages
David Schleis- Tax Rates Understanding the Many Different Tax Rates Each Year David Schleis, and his fellow Tax Preparers at DS Financial Advisors, are waiting to explain the current and past tax rates to you. These rates, which are applicable to every tax payer, can be confusing for some. Seeking the help of a qualified accountant and finding a tax professional who is knowledgeable is the key to prompt and efficient income tax return filing. What are Tax Rates? The federal government and the Internal Revenue Service dictates that each dollar of certain income you earn is subject to taxation. The percentage taxed on that dollar is determined by your individual tax rate. Tax rates are different for everyone, and will change yearly, depending upon your total annual income and filing status. For tax payers who are unsure of their unique tax liability, it is important to find a tax professional for tax rates. Tax Brackets Explained There is much confusion between the terms tax rate and tax bracket. Many believe that they are interchangeable, though they are not. Your tax bracket is determined based upon a formulaic spreadsheet that uses your filing status and total annual income. When this information is added to the tax bracket system, the resulting number is the tax rate that some or all of your income will be taxed at. Using the tax bracket guidelines, you can figure out your own individual tax rate. Keep in mind that the tax rates change each year. If you are filing
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