国产AV

Understanding your federal income taxes can be a complex process, but below is a breakdown of key concepts.

Progressive Tax System:

• The US federal income tax system is progressive, meaning people with higher incomes pay a larger percentage of their income in taxes.
• This is achieved through a system of .

Tax Brackets:

• Tax brackets divide income into ranges, each with a different tax rate.
• As your income increases, you move into higher tax brackets, with higher tax rates on the portion of your income falling within that specific bracket.
• You only pay the higher rate on the income within that new bracket, not on your entire income.

Filing Status:

• Your filing status (e.g., single, married filing jointly, head of household) impacts your tax brackets and the amount of your standard deduction.
• Choose the filing status that results in the lowest tax liability.

Deductions and Credits:

• Deductions - reduce your taxable income, lowering your overall tax liability.
• Credits - dollar-for-dollar reductions in your tax liability, potentially resulting in a refund.