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AloneWithFood t1_iuh13mz wrote

Reply to comment by agm_93 in Can I use past expenses as a tax deduction? by agm_93

10% for individual income of $9,875 or less ($19,750 if married filing jointly) 12% for individual income over $9,875 ($19,750 if married filing jointly) 24% for individual income over $40,125 ($80,250 if married filing jointly) 32% for individual income over $85,525 ($171,050 if married filing jointly)

What this means is for the first $9,875 earned you pay 10% tax. Then for income earned $9,876-$40,125 you pay 12%. And so on and so on.

So if you earned $85,525 you won't pay exactly 32% taxes because for the first 9.8k you paid 10% and for the rest up to 40k you paid 24% and so on.

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I__Know__Stuff t1_iuhunig wrote

But the tax savings from deducting an expense is at the marginal rate, not the average rate.

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AloneWithFood t1_iuic33y wrote

If op earned 87k and deducted 1k then his income would be 86k. He would not pay the 32% taxes on that 1k deduction. Correct?

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