Reminder: Khan Academy still has basic explanations on taxes in the U.S. This should help you with understanding tax brackets, deductions, and other related information.

[u/zonination]

Basically a repost from last year, but I felt the need to remind people that this resource exists. There are some simple explanations of tax law in the U.S. over at Khan Academy. Here are a couple links:

• Introduction to Tax Brackets
• Introduction to Deductions
• A link to all lessons in the Tax Portal

And since retirement accounts tie into deductions:

• Link to the Retirement Accounts lessons

Let me know if there's anything related I should add to this list. Happy filing!

[u/dex1]

2015 brackets: http://taxfoundation.org/blog/irs-releases-2015-tax-brackets

[u/FreeCashFlow → u/[deleted]]

You misunderstand. You'll only be taxed at 25% on the $500 above the bracket cut-off. The rest will be at 15% and lower.

[u/Bones_MD → u/FreeCashFlow]

So wait...let me get this straight. First 9225 is taxed at 10%, then everything up to 37.5k after that 9225 is taxed at 15% and so on?

[u/jmblock2 → u/Bones_MD]

Yes

[u/Bones_MD → u/jmblock2]

Oh my God that makes so much more sense now.

[u/[deleted] → u/Bones_MD]

Beautiful, isn't it? I love clever systems like this.

[u/Bones_MD → u/[deleted]]

That really is amazingly clever and it really doesn't fuck any one particular person over. Wow that's actually a lot more balanced than I thought it was, and the top tax bracket is only attainable by the top five or six percent of earners in the US.

[u/FreeCashFlow → u/Bones_MD]

You got it! And don't forget, your taxable income is reduced by both the standard deduction and the personal exemption. In 2015 these will total $10,300. The deduction could be higher if you itemize, which depends on factors like state and local taxes, charitable giving, mortgage and student loan interest, medical expenses, etc.

[u/Bones_MD → u/FreeCashFlow]

Oh man. I may come out way ahead this year. Cheers man!

[u/Plazmotech → u/Bones_MD]

Yup