What is a Tax Bracket? 🤔
Tax brackets are different levels of income that get taxed at different rates. When you make more money, only the extra amount is taxed at a higher rate, not all of your money.
Why Tax Brackets Matter 💡
Tax brackets help make sure you don’t pay a higher rate on all your income, just on the extra money you make that falls into a higher bracket.
How Tax Brackets Work
How Taxes Increase 📈
As your income goes up, only the part that moves into the next bracket is taxed at a higher rate.
For example, if you move from 10% to 12%, only the extra money above 10% is taxed at 12%.
Big Freelance Payments 🏄
Large payments might push some of your income into a higher tax bracket, but only the extra amount will be taxed more.
How Tax Rates Work 💵
Everyone starts in the lowest bracket (10%). As your income grows, only the income above each limit is taxed at the next higher rate.
Why It Looks Higher 🤗
In regular jobs, taxes are taken out evenly. But with freelance income, big payments can look like they’re taxed more since they weren’t spread out.
How WorkMade Helps 🤝
Automatic Tax Calculations 🤖
We do the math for you to make tax time easier.
No Surprises 🎊
WorkMade helps keep track of your income so you know how much to save for taxes and avoid any unexpected bills.
Finding Deductions 🔍
WorkMade helps you find ways to lower your taxes with deductions.
Help with Payments ❓
We calculate your taxes and help you pay the IRS and state taxes on time.
Example
If you earn $50,000, most of your income is taxed at 12%. If you get a $10,000 bonus, only the extra $10,000 is taxed at 12%, not the entire $60,000.
WorkMade makes taxes simple, helping you manage them easily and save money.
📓 Each tax situation is unique. WorkMade provides general info based on guidelines from tax authorities, which may change over time. For more details, refer to Regulation CC.