Remember: if on the last day of 2022 you were unmarried or legally separated from your spouse-and you don’t qualify for another filing status-you file your taxes in 2023 as an individual single taxpayer. To make things easier, here are four cheat sheets for determining the amount of tax you need to pay, organized by filing status: Individual single filers The math involved in calculating how much you owe from each ‘chunk’ of income can get complicated. How do I calculate my taxes using these tax brackets?

In this example, your marginal tax rate is 12%. We call the highest tax rate that you pay your marginal tax rate. In equation form, we’d write this out as: So you’ll pay two different tax rates: 10% on the first $10,275 ‘chunk’ of your income, and 12% on every dollar you made above $10,275. the $0 - $10,275 bracket, which taxes you at 10%.That means you’ll fall into two different tax brackets and get taxed at two different rates: This means different parts of your income is taxed at a different rate.įor example, let’s say that your taxable income ends up being $20,000. Unless you made $10,275 or less in taxable income in 2022, it’s likely you fall into at least two brackets. Let’s take the IRS tax brackets for individual single filers in 2022: (Keep in mind, these brackets are for income tax only capital gains tax uses its own set of brackets.) Once you’ve calculated your taxable income, it’s time to look at the IRS’s tax rate schedule-a fancy term for ‘big list of tax system brackets’-for the year you’re doing your taxes for. (Check out Bench’s Big List of Small Business Tax Deductions for more info.) Tax brackets are based on your taxable income, which is what you get when you take all of the money you’ve earned and subtract all of the tax deductions you’re eligible for. Married filing jointly or qualifying widow(er)

Paid adjusted in 2022 for 2021