How do the tax brackets work?
I assumed if you make it in a next bracket, so say you land in the $73,801 – $148,850 range, all of your income is 25% taxed.
My boss says he thinks if you are the in bracket, so say $73,801 – $148,850, then all of your income under $73,801 is at the 15% and only the money between $73,801 and $148,850 is at the 25% rate? Is this correct?
Thanks.