If you earn enough extra income to be placed in a higher tax bracket and have a higher marginal tax rate,the new rate will be applied to all of your taxable income.

Name: If you earn enough extra income to be placed in a higher tax bracket and have a higher marginal tax rate,the new rate will be applied to all of your taxable income.
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Question

Quizplus · Accepted Answer

The new, higher marginal tax rate only applies to the income that falls within that higher tax bracket, not all of your taxable income.

If You Earn Enough Extra Income to Be Placed in a Higher