Strap in, everyone, we’re heading into 2021. A lot of things are uncertain about the upcoming year but not taxes. Thankfully, every year we get a little heads up as to what to expect in order to make the best financial decisions for our households. For a lot of people, these changes may seem insignificant and they may go about their daily lives as though nothing has changed.
But we’re firm believers that before you make any New Years’ resolutions, you have to know what the new year has in store.
Are you ready? Click NEXT to find out more about how some tax law changes could affect you!
1. Tax Brackets Increase for All Filing Statuses
Everyone in the U.S. falls under different tax brackets. Thanks to inflation, these are adjusted on a yearly basis. In 2021, here are the minimum income levels for the top tax brackets for every filing status.
In 2020, for singles, it was $518,401. In 2021, that figure changes to $523,601.
For the head of household, $523,601, up from $518,401 in 2020.
If you’re married and filing separately, it’s $314,150, compared to $311,026 in 2020. For married couples filing jointly, it’s $628,301 compared to last year’s $622,051.