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U S FEDERAL INCOME TAX PRACTICE GUIDE Form the AICPA Aicpa

U S FEDERAL INCOME TAX PRACTICE GUIDE Form the AICPA Aicpa

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let me explain how taxes work in America because so many of you misunderstand this so you may look something like this up and think oh I made fifty thousand dollars therefore I mean the 22 tax bracket no somebody making 50k is not even in the 22 they're actually in the 10 and the 12. let me show you and this is assuming you're single and I'm keeping it really simple to explain so here's 50 000 you're going to deduct the standard deduction which is immediately going to take you out of that 22 tax bracket you're now at 37 000 now you're going to break up that 37 000 into the two tax brackets the 10 and the twelve so you're gonna get taxed ten percent on the first 10 000 and then 12 on the next twenty six thousand dollars here it is the total is four thousand two hundred and forty dollars that puts you in the eight point four eight percent effective tax rate so you are not paying 22 you're paying eight point four eigh

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