MonikaK1
Employee Tax Expert

Get your taxes done using TurboTax

Your taxes are computed based on your total taxable income. Tax rates are different for different amounts of income. As @xmasbaby0 stated, your filing status, credits, and deductions also affect your net tax.

 

If your taxable income falls into the 22% bracket, that is actually your "marginal tax rate" - you are taxed at that rate on the portion of your income that falls into that bracket, and the portion under that amount gets taxed at lower rates.

 

For 2022, married filing jointly, the 22% rate covered taxable income from $83,550 to $178,150.

For 2023, married filing jointly, the 22% rate covers taxable income from $89,451 to $190,750.

The lower brackets also changed for 2023, so the overall calculation has changed.

 

In other words, your marginal tax rate refers to the tax rate on the last dollar of your taxable income, or the highest tax bracket you fall under. For example, if you're a single filer earning a taxable income of $75,000, your marginal tax rate would be 22% for the 2023 tax year. See this tax tips article for more information.

 

In addition, taxes are often calculated using a different method than the tax tables. For example, if you have capital gains, the tax on those is calculated at the capital gain rate for your income level. If you are self-employed, you may have self-employment taxes in addition to income taxes.

 

If you completed your return in TurboTax, you can preview your Form 1040 following these steps:

 

  1. Click on "Tax Tools" in the left menu
  2. Click "Tools"
  3. Click "View Tax Summary" in the Tool Center window
  4. Click on "Preview my 1040" on the left

@smile6546 

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