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apayoung574
New Member

What is the maxium income we can take for the year 2021 before we go to next tax level? Joint filing with retired husband

 
3 Replies
DoninGA
Level 15

What is the maxium income we can take for the year 2021 before we go to next tax level? Joint filing with retired husband

Not sure what you mean for next level, but here are the tax brackets for tax year 2021 - https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2021 Marginal Rates: 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).
DoninGA
Level 15

What is the maxium income we can take for the year 2021 before we go to next tax level? Joint filing with retired husband

Tax Brackets and Rates, 2021  
Rate For Unmarried Individuals For Married Individuals Filing Joint Returns Married filing separately For Heads of Households  
10% $0 to $9,950 $0 to $19,900 $0 to $9,950 $0 to $14,200  
12% $9,951 to $40,525 $19,901 to $81,050 $9,951 to $40,525 $14,201 to $54,200  
22% $40,526 to $86,375 $81,051 to $172,750 $40,526 to $86,375 $54,201 to $86,350  
24% $86,376 to $164,925 $172,751 to $329,850 $86,376 to $164,925 $86,351 to $164,900  
32% $164,926 to $209,425 $329,851 to $418,850 $164,926 to $209,425 $164,901 to $209,400  
35% $209,426 to $523,600 $418,851 to $628,300 $209,426 to $314,150 $209,401 to $523,600  
37% $523,601 or more $628,301 or more $314,151 or more $523,601 or more  
           
Opus 17
Level 15

What is the maxium income we can take for the year 2021 before we go to next tax level? Joint filing with retired husband

Remember that moving into a higher tax bracket does not raise income tax rate on all your income, just the part over the bracket level. For example, if you are married filing jointly, and your taxable income is $82,000, that does not mean that the entire $82,000 is taxed at 22%, only the top $50. (Since the bracket starts at $81,050.) Also remember that taxable income is after the standard deduction, which will be $24,800, or $26,100 if one of you is over age 65. So you would not enter the 22% tax bracket until your gross taxable income was more than about $106,000.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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