The IRS Tax Brackets For This Year
What are tax brackets for a year?
You might not know the exact meaning of the term tax bracket. It is a division of tax rates allotted to people of different income groups. There are two types of tax systems. The first one is the most common one and is found everywhere. This is known as the progressive tax system. In this system, the tax rates increase with increasing income i.e. the tax rates are proportional to the income of people. The second and the rare one is the regressive tax system. This system applies lower tax rates to higher income groups. In other words, tax rates decrease with increasing income.
2012 tax brackets
Tax Rate Single (estimate) Married, Filing Jointly (est.) Married, Filing Separately (est.) Head of Household (est.)
10% $0 – $8,700 $0 – $17,400 $0 – $8,700 $0 – $12,400
15% $8,700 – $35,350 $17,400 – $70,700 $8,700 – $35,350 $12,400 – $47,350
25% $35,350 – $85,650 $70,700 – $142,700 $35,350 – $71,350 $47,350 – $122,300
28% $85,650 – $178,650 $142,700 – 217,450 $71,350 – $108,725 $122,300 – $198,050
33% $178,650 – $388,350 $217,450 – $388,350 $108,725 – $194,175 $198,050 – $388,350
35% Over $388,350 Over $388,350 Over $194,175 Over $388,350
Federal income tax brackets for 2012 by IRS (Internal Revenue Service)
The official inflation adjusted tax brackets for 2012 have been recently released by the IRS (Internal Revenue Service). The IRS does this every year so that tax rates keep up with inflation. The federal income tax brackets for 2012 are going to have an effect on your income for 2012 and your income tax returns in the next year. The income breakdown this year is quite similar to that of the last year. The only noticeable amendment for 2012 is the inflation modification in income levels and their tax deductions. The Congress is still able to make changes to the tax brackets; however, there is a very little chance, as the latest tax bracket changes are a major part of the election campaigns of 2012. If they make any amendments to it, they might just ruin the future tax debate.
Some noticeable tax changes
Many changes have been made to the tax brackets this year. However, here are the major modifications that have been made. You are going to need these when filing your taxes.
? As compared to that of 2011, the personal exemption sum has been increased by an amount of $100 and is around $3,800.
? Tax on Arrow shafts has increased. $0.47 is the tax enforced if a manufacturer, importer, or producer sells a sheft.
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