<prompt> Human: Hello, I recently completed school and was hired by a company. This job has significantly increased my income and it puts my partner and I into a totally different tax bracket. Our annual income is roughly 93,000. At this company, I have the opportunity to contribute to a Simple IRA as well as an HSA. I see that the maximum contribution for a family for the Simple IRA is 12,500 and for the HSA, 6,900. We also donate roughly 1,400 to charity annually. Should we contribute the necessary amount to reduce our placement in the tax brackets?It appears we currently fall into the 22 bracket because out income is between 77,401 and 165,000. If were to max out our contributions, wed be looking at roughly 72,000 taxable income bringing us down to the 12bracket being between 19,051 and 77,400.Am I missing anything in thinking that if we can afford this, that we should contribute enough to take advantage of the 10 tax reduction? Im just not very confident in how all this works and if Im thinking about it correctly. nbsp;Breakdown:Income: 93,000IRA Max Contribution: -12,500HSA Max Contribution: -6,900Charity: -1,400Taxable Income: 72,200nbsp;TL;DR: Should I contribute enough income to IRAHSACharity to drop me into a lower tax bracket?  <response>: You should research how income tax brackets works. Your tax bracket, roughly speaking, is the tax rate you pay on your highest dollar of taxable income.Your tax bracket is not the tax rate you pay on all of your income after adjustments, deductions, and exemptions.Your tax bracket only determines your individual income tax rates for each additional dollar of income ignoring the effects of rounding. 