Resources
Federal and State Forms
https://www.irs.gov/forms-instructions
Minnesota Department of Revenue
https://www.revenue.state.mn.us/minnesota-department-revenue
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2021 Tax Brackets for Single Filers and Married Couples Filing Jointly
2021 Tax Brackets for Married Couples Filing Separately and Head-of-Household Filers
How Tax Brackets Work
Suppose you’re single and make $90,000 of income in 2021. Since $90,000 is in the 24% tax bracket, then your total tax due would be $90,000 x 24% = $21,600. Could that be right? No, the total tax due is ($9,950 x 10%) plus ($30,574 x 12%) plus ($45,849 x 22%) plus ($3,624 x 24%) = $15,621. This is why we call tax brackets marginal and we say there is an effective tax rate in that the rate overall is actually a blended rate. Ask me more about this example!