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TurboTax & H&R Block
Online Tax
Preparation Software
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Income Tax Brackets 2011 - 2012
Our income tax brackets
table below will help you determine your tax bracket and tax rate you
will use for preparing your federal tax return.
>> TurboTax FREE Income
Tax Calculator
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Required
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Tax Calculator
IRS Federal
Income Tax Brackets and Rates
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United
States Income Tax Brackets History
In the U.S., federal income tax
personal exemptions and standard tax deduction are adjusted for taxpayers
and dependents on an annual basis. These annual adjustments account
for inflation and result in the adjustment of federal income tax brackets.
While the tax brackets
change due to the Bureau of Labor Statistics Consume Price Index for
Urban Consumers (CPI-U), legislation may or may not change income
tax rates which in turn come into play dictating the outcome of your
online income
tax preparation. |
The number of income tax
brackets have changed over the last couple decades with just 3 tax
brackets existing in 1992, 5 tax brackets from 1993 thru 2001, and 6
tax brackets from 2002 thru 2012. See table below.
Tax Brackets Rate
History
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1992 |
1993 - 2000 |
2001 |
2002 |
2003 - 2012 |
|
|
|
|
10% |
10% |
|
15% |
15% |
15% |
15% |
15% |
|
28% |
28% |
27.5% |
27% |
25% |
|
31% |
31% |
30.5% |
30% |
28% |
| |
36% |
35.5% |
35% |
33% |
| |
39.6% |
39.1% |
38.6% |
35% |
Calculating Your
Income Tax Bracket Taxable Income
 Total
Gross Income is the sum of all taxable income earned during the tax
year. This includes your W-2
wages and salaries, cash payment income from side jobs, self
employment income and interest earned or capitol gains accrued.
Almost all income is taxable,
however, there are a few exemptions your
tax preparation software
should catch. Examples include:
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Payments from Social
Security to an individual
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Non-taxable interest on government
issued bonds
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Disability Insurance
Payments
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Employer Provided
Insurance
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Life Insurance Payouts
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Sale of Principal
Residence
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Up to $3000 of income
offset by capitol losses
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Municipal bond interest
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Portions of an
inheritance... etc...
 W-2 wages are the
earnings that appear on your employee W-2 form issued by
your employer each year in January. The W-2 form also shows the amount
withheld by the employer for federal income tax. A copy of the W-2
is sent to the Internal Revenue Service (IRS) and shows your Gross Salary less any
pre-tax plan contributions.
Adjusted Gross Income (AGI) is
your Total Income minus some specific deductions that are allowed by
the IRS. Some deductions include student loan interest, permitted
moving expenses, self-employed retirement program, recipient alimony
income, etc.
Itemized Deductions can include items like mortgage
interest, local property taxes, charitable contributions, state
income taxes, etc.
Standard
Deduction is a Itemized Deduction. If you add up all your itemized
Deductions and it is less than the Standard Deduction you take the
Standard Deduction to help lower your position on the federal income
tax brackets.
Personal Exemption is a tax exemption in which the taxpayer can
deduct an amount from their gross income for each dependent they can
claim.
IncomeTaxBrackets.Net
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