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Paye Tax Tables Form

Paye Tax Tables Form

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Instructions and help about tax table

These are tax brackets for 2019. Simple, right? But many of us make a common mistake when looking at this. Let's say my income is $84,000. You might think that puts me in the third bracket. So I would owe the federal government 22% of my income. This is wrong. And it's causing us to have uninformed debates about tax policy. Here's how it actually works. Let's go back to my $84,000 income. Now, instead of thinking of tax rates as brackets, we should think of them as pockets. But first there's one special pocket we need to talk about. The money we put in this pocket is not taxed. The government automatically lets single people put $12,000 in this special pocket — and more for couples. But if you spend a lot of money on things like medical expenses or charitable donations, you can sometimes put in more. These are called "deductions." With the $70,000 that’s left over we can start filling up the pockets. This first pocket has ro

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