Tax season is upon us! It’s time to start thinking about your income tax bracket for 2021, so you can get a jump on preparing your tax return for the internal revenue service. There will be seven federal income tax brackets in 2021, and the following guide will help you understand how they work. Using some of the top small business tax software can also make the task much more manageable.
What is a Tax Bracket?
A tax bracket is the range of income that is taxed at a certain rate, and it also largely determines how much money is withheld from your paycheck. The federal government decides which bracket applies to you by looking at your taxable income, which is your total income minus any deductions or credits you qualify for.
