AamilD
Expert Alumni

Get your taxes done using TurboTax

It depends. Since I am not sure what filing status you will be filing under, my assumption is that you will be filing as a single filer.

 

The first $12,550 income is not taxed since its part of the standard deduction so if you make below $12,550, in most ( not all ) cases, you should not be paying any taxes.

 

If you make above that threshold, there is a concept of tax brackets and marginal tax rate. Let me give you an example. Lets say your total income for 2021 was $50,000. Your tax will be calculated as follow:

 

Total Income                                                           =$50,000

Less Standard Deduction                                       =(12,550)

                                                                          _____________

Taxable Income                                                      $37,450

 

 

Now based on the tax brackets, your first $9,950 of Taxable income will be taxed at 10% and the remaining $27,500 ($37450-$9,950) will be taxed at 12%.

 

Based on the above example you can see that as you start making more income, the ADDITIONAL income will be taxed at a higher rate. 

 

However, just because you have multiple W2 does not automatically put you in a higher tax bracket. It all depends on the total income. Please refer to the image below for the 2021 Tax Brackets as a reference: