The president of Capital Preservation Services, LLC, in Mississippi, Todd Mardis oversees daily operations at the tax planning company and maintains relationships with potential and current clients. At his company, Todd Mardis and colleagues provide a range of services, including estate planning, asset protection planning, and advanced tax planning. In October 2020, the Internal Revenue Service (IRS) released updated tax brackets for the 2021 filing season that reflect inflation.

1. IRS Releases 2021 Filing Season Tax
Brackets
Todd Mardis

2. Introduction
The president of Capital Preservation Services, LLC, in Mississippi, Todd
Mardis oversees daily operations at the tax planning company and maintains
relationships with potential and current clients. At his company, Todd Mardis
and colleagues provide a range of services, including estate planning, asset
protection planning, and advanced tax planning. In October 2020, the Internal
Revenue Service (IRS) released updated tax brackets for the 2021 filing
season that reflect inflation.

3. There are seven different brackets that taxpayers fall into: 10 percent, 12
percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. In
2021, these rates are the same as in 2020. They will also remain relevant for
tax returns filed in 2022. However, the IRS changed the specific amounts
associated with each bracket to reflect cost-of-living adjustments for the 2021
filing season.

4. For the 2020 filing season, taxpayers had to pay 10 percent of their income in
taxes if they had up to $9,875 of taxable income. This changed for 2021, with
the new threshold between $9,950 or less for single filers. Meanwhile, married
couples filing jointly have a threshold of $19,900 or less for the 2021 filing
season.
Each subsequent tax bracket also increased for 2021. In 2021, the maximum
threshold for the top tax bracket is a taxable income of more than $523,600 for
single filers. It was $518,400 in 2020.

5. The IRS also gave individuals and married couples a bump in the standard
deductions available to them in 2021. Compared to 2020, the standard
deduction for single filers and married couples filing separately rose $150 to
$12,550. For married couples filing jointly, the amount increased by $300 to
$25,100.