Minggu, 22 April 2012

New Federal Tax Income Tax Rates 2012 ' What's Your Tax Bracket?

federal income tax ratesWell, for those who did not know it, the tax rates for 2012 have been carried on for the past couple of years.

The passing of the Tax Relief Act of 2010 has signed in the law the proposed extension of the current tax rate schedule for the previous two years.

This means that the rates will be subject to revision in 2013 unless new legislation is passed to further extend the changes. For those who don't quite grasp the rating system, it might be good to go over them right now.

This will help you understand the value of the Tax Relief Act. Here is a breakdown on the Federal Tax Rates of 2012.

Some Perspective on the Federal Tax Tables 2012

Prior to the official passage of the Tax Relief Act, the schedule of rates would have shifted in 2011. This may be better illustrated in the following breakdown.

Now, the tax rate changed noted above will not tax effect until the beginning of 2013, barring any decisions to introduce further legislation to maintain the rates as is or make other arrangements. It might also be mentioned that any capital gain income may be taxed at different tax rates. In most case, the capital gains are figured separately from other taxes. Having these rates ahead of time can help you plan for tax time early.

Just A Preview of the New Tax Rate Schedule

This brings another point into focus, those rate schedules are just advance previews and do not necessarily reflect the official rate schedules that will eventually be released by the IRS. You may have to wait a little while before you can get the complete numbers or even see the official income brackets that are assigned to each of the aforementioned percentages.

At the same time, it may be good to get a few more details that can help your tax planning strategies. Obviously, there will be differences based on your filing status, meaning whether you are filing single, married jointly, etc.

For instance, the 10% rate for a single filer is for income ranging from $0 to $8,700. Whereas, married joint-filers in the 10% bracket cover an income of $0 and $17,400.

On the high end, those in the 35% rate schedule include those making over $388,350. These examples are, of course, subject to revision. You can examine the rate categories in more detail on your own.

Taxes And Your Financial Planning

What you might already have guessed is that the tax rate schedules can be helpful in making your financial plans more precise. For instance, with these rates in hand, you may be able to estimate the tax you may pay on additional earned income.

Also, you can find out how to reduce how much you will have to pay at tax time but increasing your deductions now. There are benefits to knowing the proposed 2012 federal tax rates. Why not discover some yourself?

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