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"Dear Dan,

I went to the tax table and for 82,000 the tax would be 20,109 for a single. Would the tax rate be 20,109/82,000 = 24.5% or am I missing something fundamental?

Then I went to the tax rate schedule and it said that for a single, anything over 63,550 would be in the 31% bracket. Is there a FAQ or something that could explain these rates to me?"

I am not Dan, but it is clear to me that you are confusing the marginal rate (a/k/a tax bracket), which is the amount of tax that you would owe for the very next dollar of taxable income, with the effective tax rate, which is total income taxes due for the year divided total taxable income for the year.

I do not recall whether the FAQ to this board discusses the difference, but knowing Roy, I suspect that it does.

Regards, JAFO
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