Am I stuck in an upper tax bracket?
If your income goes up enough to go into a higher tax bracket one year are you stuck in that higher tax bracket forever even if your income goes down the following year?
Terry Says
No! Every year your income is used to calculate your tax bracket. If your income drops, you’ll be in a lower tax bracket — and pay less in taxes.
However, if you’re a senior on Medicare, one year of higher income could raise your monthly Medicare B and D premiums. And those higher premiums will stick around unless you apply to have them reduced.
