Conduct online research for federal income tax brackets for the current year.

Which tax bracket do you fit into for your gross household income? How close is your gross household income to the next lowest tax bracket? Create a list of possible deductions for your household. Are you able to reduce your taxable income enough to place you in the next lowest tax bracket? If not, what are some steps you could take to do so?

The United States federal income tax has seven significant tax brackets that include; 10 % 15%, 25%, 28%, 33%, 35% and 39.6%, for instance, the amount of tax you pay depends on individuals filing status and income level. However it does not mean that moving into a higher tax bracket does not imply that all of your income will be taxed at a significantly higher rate. But it only applies on the amount that you earn within a specific tax bracket which is subject to that particular tax rate.

For instance, an individual but not married with a taxable income in the bracket of $0-$9225, will be subject to 10% rate and $9226-$37,450 will pay $922.50 together with 15% of the amount over $9225 among other brackets. While for those married who file jointly or qualifying widow with a taxable income within the bracket of $0-18,450 will pay at a rate of 10% and those within $18,451-74,900 will pay $1845 together with 15% of the amount over $18,450.

For in my case, I have an income of $80,000, which falls in the bracket of $37,451 to $90,750. On the basis of a single person I will pay $5,156.25 plus 25% of the amount that is over $37,450. My gross household income is close to the lowest tax bracket of $9226 to $37,450 by a difference of $ 4,233.75. Some of my household deductions include; health insurance contribution, retirement scheme contribution, education insurance contribution, utility bills that include rent, water, electricity and security. Reducing my taxable income means that I will have to earn less, therefore there is no need of reducing the income instead going higher to the next bracket will be more advantageous, since I will have higher taxable income and even if I will pay a higher rate, I will be able to take care of my other deductions comfortably from the remaining balance, and this is achievable by having a job that pays better than the one am having.

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Taxable income The United States federal income tax has seven significant tax brackets that include 10 15 25 28 33 35 and 396 for instance the amount of tax you pay depends on individuals filing statu... View the full answer