Tax Bracket

Tax brackets define how much of your income is taxed at each rate. The U.S. uses a progressive system — you don't pay your top rate on all income, only on the portion above the previous bracket's threshold.

Common misconception

"I'm in the 24% bracket" doesn't mean all your income is taxed at 24%. It means the income above $100,525 (for single filers) is taxed at 24%, while lower portions are taxed at 10%, 12%, and 22%.

Prediction market income stacks on top

Your prediction market profits are added to your other income. If you earn $80,000 in salary (22% bracket) and make $30,000 from prediction markets, the prediction market income pushes part of your total income into the 24% bracket. predictiontaxes.com accounts for this when you enter your other income.