What is Tax Bracket?
Definition Tax brackets are the income ranges that are taxed at progressively higher rates under a progressive tax system. Only the income that falls within each range is taxed at that range's rate, so moving into a higher bracket does not raise the rate on your earlier dollars. Brackets are adjusted for inflation each year and differ by filing status.
Knowing where a client sits within their brackets helps time income and deductions to fill up lower brackets and avoid pushing income into higher ones.