Columbia SC tax attorney Joseph Arndt is dedicated to helping taxpayers steer clear of IRS trouble. He’s been doing that for over 30 years. A large part of that effort is keeping abreast of the annual changes in the tax code, large and small. Let’s a take a very basic look at some of the most important 2021 tax changes.
Marginal Tax Rates: Here is a look at your Marginal Rates for 2021, as provided by the IRS:
For tax year 2021, the top tax rate remains 37% for individual single taxpayers with incomes greater than $523,600 ($628,300 for married couples filing jointly). The other rates are:
- 35%, for incomes over $209,425 ($418,850 for married couples filing jointly);
- 32% for incomes over $164,925 ($329,850 for married couples filing jointly);
- 24% for incomes over $86,375 ($172,750 for married couples filing jointly);
- 22% for incomes over $40,525 ($81,050 for married couples filing jointly);
- 12% for incomes over $9,950 ($19,900 for married couples filing jointly).
- The lowest rate is 10% for incomes of single individuals with incomes of $9,950 or less ($19,900 for married couples filing jointly).
Standard Deductions: The standard deduction is just easier than itemizing, and many folks take advantage of it. These have increased ever-so-slightly, up $150 for single and $300 for married filing jointly. [Read more…]
