Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent ābracket creep,ā when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any real income increase. The IRS used the Consumer Price Index (CPI) to measure inflation beforeContinue reading “2021 Federal Tax Guidelines”
Tag Archives: income taxes
2021 Federal Tax Guidelines
Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent “bracket creep,” when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any real income increase. The IRS used the Consumer Price Index (CPI) to measure inflation beforeContinue reading “2021 Federal Tax Guidelines”