IRS changes could mean more money in your pocket: What’s new?

Recent IRS changes may allow taxpayers to retain more of their money. Federal income taxes operate on a progressive system, which ensures that individuals do not pay a single flat tax rate on their entire income. Instead, the system applies different tax rates to various portions of the total income, categorized into specific brackets. This structure means that as income increases, only the portions falling into higher brackets are taxed at those respective higher rates.