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Simple English definitions for legal terms

tax bracket

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A quick definition of tax bracket:

A tax bracket is a range of income that is taxed at a specific rate. The United States has a progressive tax system, which means that the more money you make, the higher percentage of your income you pay in taxes. There are currently seven federal tax brackets in the United States, ranging from 10% to 37%. The tax bracket only applies to a specific range of income, not necessarily to all of the person’s income.

A more thorough explanation:

A tax bracket is a range of income that is subject to a specific tax rate. The United States Federal tax system is a progressive tax system, which means that the taxation progressively increases as a taxpayer’s income grows. Low incomes fall into the tax brackets with lower tax rates, while the higher incomes fall into brackets with higher tax rates. The tax bracket only applies to a specific range of income, not necessarily to all of the person’s income.

For example, a single filing person with $20,000 of income in 2021 would be taxed 10% for the first $9,950 and 12% for the next $10,050, not 12% for the whole $20,000. As of 2021, there are currently seven federal tax brackets in the United States, ranging from 10% to 37%. Married filers have different tax brackets than single filers.

Here is an example of the tax brackets for single filers in 2021:

  • 10% for income up to $9,950
  • 12% for income between $9,951 and $40,525
  • 22% for income between $40,526 and $86,375
  • 24% for income between $86,376 and $164,925
  • 32% for income between $164,926 and $209,425
  • 35% for income between $209,426 and $523,600
  • 37% for income over $523,600

So, if a single filer had an income of $50,000 in 2021, they would be taxed:

  • 10% on the first $9,950 = $995
  • 12% on the next $30,575 ($40,525 - $9,950) = $3,669
  • 22% on the remaining $9,475 ($50,000 - $40,525) = $2,084.50
  • Total tax owed = $7,748.50

Similarly, here is an example of the tax brackets for married filers in 2021:

  • 10% for income up to $19,900
  • 12% for income between $19,901 and $81,050
  • 22% for income between $81,051 and $172,750
  • 24% for income between $172,751 and $329,850
  • 32% for income between $329,851 and $418,850
  • 35% for income between $418,851 and $628,300
  • 37% for income over $628,300

So, if a married couple had a combined income of $150,000 in 2021, they would be taxed:

  • 10% on the first $19,900 = $1,990
  • 12% on the next $61,150 ($81,050 - $19,900) = $7,338
  • 22% on the next $91,700 ($172,750 - $81,050) = $20,174
  • 24% on the remaining $27,250 ($150,000 - $172,750) = $6,540
  • Total tax owed = $35,042

These examples illustrate how tax brackets work and how the tax rate increases as income increases.

tax basis | tax costs

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17:28
if they told me this like 2 weeks ago, i would have not gotten an apt in la yet
17:30
i ideally want a fed govt position in dc, but i dont think i can physcially afford to cancel all my plans to attend :(
that really sucks
Coolperson49494
18:08
10k for the life you want vs a school that prob wont get you there is prob worth
Coolperson49494
18:08
id do it although LA biglaw seems more appealing overall tbh
OvertReconditeSpider
18:20
If that person doesnt have 10k however, could be outta luck
yeah i think it comes down to literally not having 10k to blow
OvertReconditeSpider
18:20
Oof
OvertReconditeSpider
18:20
Skill issue
OvertReconditeSpider
18:21
Jk even if i had it. I wouldnt spend 10k just to get out of a lease to switch schools
MightyUnableSphinx
18:29
@menherachan: You should say that to GULC
MightyUnableSphinx
18:30
I mean fuck it right. Like, maybe they can help somehow. Probably they can't but if the alternative is "i dont go to gulc" who cares
MightyUnableSphinx
18:30
Idk I doubt they can give you 10k cash, lmao, but who knows!
Others will disagree, but max out a credit card if you have to do so.
It's 10K. Not 100K.
OvertReconditeSpider
19:29
10K at 21.51% interest. Lol
19:47
Yeah I would definitely disagree. Without family help when could they realistically pay that off?
20:18
If someone can live below the student budget at GULC loans could cover an extra $10K, but Grad PLUS loans still amount to $2 in repayment for every $1 borrowed on a 10-year plan at current interest rates. Not a choice to make lightly.
OvertReconditeSpider
20:19
^
OvertReconditeSpider
20:19
The rates on the stafford loans are garbage too
manifestmoreadmissions
21:59
yeah its not the worst decision and im sure you could find solutions to any problems it might create but idk if it's like a no-brainer
MightyUnableSphinx
0:11
Apply for new credit card w/ 12 month 0% APR intro offer -> Max out card to 10k to get out of lease -> Go to GULC
MightyUnableSphinx
0:11
You now have 12mths to pay back 10k with no interest
MightyUnableSphinx
0:14
If you have decent credit history/credit score i bet the starting balance will be like 15-25k
MightyUnableSphinx
0:14
im actually cooking right now wtf this advice is so good. do not blow up your plan in life because of a fkn lease agreement
1:39
Excuse me everyone. Sorry. I'm planning to take lsat but I see so many different types of textbooks and categories on the market, which books should I start with for a rookie like me? Thanks a lot!
loophole
for LR
1:42
Sincere thanks, with my respect :)
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