How will the new tax brackets affect your paycheck?
The new tax brackets for the 2019 season issued by the Internal Revenue Service are out, which means you may be seeing a difference in your paycheck. A number of reforms to the U.S. tax code have been enacted by the Trump administration’s Tax Cuts and Jobs Act.
The Act requires additional adjustments for inflation, but the IRS used a different method for calculating inflation, which means most people are going to be paying more in taxes in the 2019 tax year than when they file in 2020.
People want to know how much they will be paying during this tax season, and the new brackets might have an effect on how much the tax man will require that you fork over. With more information on what the 2019 tax brackets mean to you are experts with 1-800-Accountant. This company has been making taxes simple for businesses and individuals for years. Their team consists of certified public accountants, enrolled agents and other experts who can answer nearly any question people may have involving taxes. With experts in all 50 states and industry type, they’ve created technology that’s simple to use and built for a mobile lifestyle.
The IRS adjusts tax rates for inflation every year, but the agency’s new method of gauging inflation could raise payments and government revenue when compared to previously-used measures because the standard deduction will increase more slowly.
Here’s what rates are looking like for 2020:
10%: People with incomes of $9,700 or less and married couples with $19,400 or less
12%: People with incomes over $9,700 or married couples with over $19,400
22%: People with incomes over $39,475 or married couples with over $78,950
24%: People with incomes over $84,200 or married couples with over $168,400
32%: People with incomes over $160,725 or married couples with over $321,450
35%: People with incomes over $204,100 or married couples with over $408,200
37%: People with incomes over $510,300 or married couples with over $612,350