How to determine tax rate after filing 2023 taxes

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tr2024
tr2024 Member Posts: 1 Newcomer

I am buying t-bills in 2024. I am trying to determine the tax rate I fell into in 2023. I need to determine what amount of money to withhold to pay the dividend interest. This way I don't get stuck with a large tax bill in 2024. Where in freetaxusa.com does it show my tax rates for 2023?

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  • rachels
    rachels FreeTaxUSA Agent Posts: 54
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    Hello tr2024,

    To find your tax rate, you will want to look at your Form 1040, line 15. That shows your taxable income for the year. You can then compare that to the IRS tax brackets to find the amount of tax you can expect to pay on additional income.

    For example, if you file as single and earned $80,000 in wages during the year, with an additional $5,000 in interest, your extra $5,000 would be taxed at 22%, which would be $1,100 in tax for the $5,000 of interest.

    The IRS gives these rates for 2024:

    "Marginal rates: For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).

    The other rates are:

    35% for incomes over $243,725 ($487,450 for married couples filing jointly)
    32% for incomes over $191,950 ($383,900 for married couples filing jointly)
    24% for incomes over $100,525 ($201,050 for married couples filing jointly)
    22% for incomes over $47,150 ($94,300 for married couples filing jointly)
    12% for incomes over $11,600 ($23,200 for married couples filing jointly)"

    https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024