“Will Joe Biden Raise My Taxes?” Let’s Find Out!

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1. Those who earn at least $400,000/year

Biden said that he will not raise taxes for those who earn less than $400,000/year; however, he also said that he wants to increase the top individual income tax rate from 37 percent to 39.6 percent. Meaning that what President Trump did back in 2017 with his Tax Cuts and Jobs Act will disappear.

If Biden modifies the top-rate brackets in order for them to start at $400,000, this decision will result in a tax increase for head-of-household, single, and joint, filers who make somewhere between $400,000 and the current threshold amount.

As we speak, they are not paying income tax at the top rate. So, married couples filing separate returns will be forced to pay more in taxes if they earn between $311,025 and $400,000 right now because the threshold will be pushed at $400,000 for them.

Depending on his tax decisions, you can be caught by surprise; it’s best to think about a tax plan if Biden wins the election. For example, you can consider moving money from a traditional IRA to a Roth IRA this year, as the amount will be taxed at this year’s rates.

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4 thoughts on ““Will Joe Biden Raise My Taxes?” Let’s Find Out!”

  1. Richard M Cupelli

    If Biden wins, he will probably forget what he promised after the election. He is a politician with dementia. That’s what they do.

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