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IRS Federal Tax Brackets

I bet you never thought inflation would be a good thing. Well when it comes to the federal tax bracket it is. All things must keep up with inflation and it’s no different pertaining to tax brackets.

As a matter of fact, according to the law, tax provisions must be revised each year. Because of that, there are more than three dozen tax benefits, affecting nearly every taxpayer.

Personal and Dependency Exemption

The value of this was changed from $3,500 to $3,650. That’s a $150 increase for us. Now that’s some good news for most of us.

IRS Income Tax Brackets

Knowing what tax bracket you’re in is one of the best ways to prepare for tax season, especially when your unsure which bracket you fall into.

With the election of our new president, there have been some significant changes to the income requirements of each bracket, so it’s certainly worth looking into as your bracket may have changed compared to last year.

One of the important things to understand about tax brackets is that you are only taxed a certain percentage for the money you make in each bracket

This may seem unclear at first, but here’s an example: Fred makes $80,000 a year and is due for a small raise that will bring him up to $83,000 a year. The 25% bracket stops at $82,250, so Fred’s entire income will now be taxed at 28%, right? Actually, that’s not how it works!

If you can satisfactory prove to the IRS that its bank or IRS wage garnishment is placing a financial hardship on you and making it hard on your to live, they will possibly halt the wage garnishment and try to come up with some other means of enabling you to satisfy your income tax obligations. Tacking the IRS on your own can be daunting. But if you find a good tax specialist, he will probably be able to help you in your dealings with the IRS.

If you cannot prove hardship, you will probably simply have to live with the IRS taking a certain amount of money from your check every pay period until the owed amount of money is reached.

Garnishment by the IRS is usually attempted because the IRS has been unable to collect the monied owed it in any other way.