Read More about Tax Brackets For 2012
What are tax brackets?
Tax brackets are actually divisions of tax rates that are to be enforced on various income groups of people. In general, the higher tax rates are imposed on the group of people that have a higher income. This type of increasing tax system according to the increasing income levels in called the progressive tax system. On the contrary, a regressive tax system is one in which tax rates decrease with increasing income. This system is rarely found.
Latest tax brackets for the year 2012
2012 Tax Bracket Married Filing Jointly(Estimated) Single (Estimated)
10% Bracket $0 – $17,400 $0 – $8,700
15% Bracket $17,400 – $70,700 $8,700 – $35,350
25% Bracket $70,700 – $142,700 $35,350 – $85,650
28% Bracket $142,700 – $217,450 $85,650 – $178,650
33% Bracket $217,450 – $388,350 $178,650 – $388,350
35% Bracket Over $388,350 Over $388,350
The chart above is an estimate of the tax brackets for 2012.
Elections are going to be held this year. Then obviously, there are going to be some amendments in the present and the future tax brackets. The income levels (mentioned above) for the tax brackets for this year are an estimate at present. Many people are excited for tax brackets for 2012, as President Obama signed the new bill that extended the tax deductions from 2001 to 2012. The new tax rates are going to be 10%, 15%, 25%, 28%, 33%, and 35% respectively. This new bill has made taxpayers happy, as the tax rates have remained low instead of getting higher as expected. These new tax brackets are surely going to help taxpayers make some savings for important things. It is said that if any other bill were signed instead of this one, people would have lost $3000 from their incomes immediately. Therefore, the new tax brackets are a benefit for all the taxpayers.
To consider varying inflation rates, the federal income standard reductions and personal exemptions for the citizens are regularly modified. Hence, there is a repeated change in the personal tax brackets of all the taxpayers. If you are worried that you might have to pay high tax rates this year, then make sure you learn everything about tax brackets 2012 prior to making any drastic moves to sell an investment or to make a charitable donation. If you want to make savings this year then it is very important for you to have an in-depth knowledge about the latest tax brackets for this year. It is said that if any other bill were signed instead of this one, people would have lost $3000 from their incomes immediately. Therefore, the new tax brackets are a benefit for all the taxpayers.
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