Federal Tax Rate Schedule for 2011, 2012

The federal tax rate schedule is going to change again for income earned during 2011. These tax rates will apply to your taxable income. Here are the tax rates for 2011. There are many things that can lower your taxable income such as deductions and personal exemptions.

If you are a single filer, then the tax rate schedule may look something like this:

• $0-$8,350- If you are in this earning bracket then you will be taxed at 10%.
• $8,350-$33,950- This income bracket will be taxed at 15%.
• $33,950-$82,250- If you are in this earning bracket you will be taxed at 25%.
• $82,250-$171,550- If you are in this high income bracket, your tax rate will be 28%.
• $171,550-$372,950- This level of income will be taxed at 33%.
• Any income above and beyond $372,951 will be taxed at a 35% rate.

Capital Gains Tax Rate is Different

Although capital gains are technically income they are actually taxed at a different rate that your earned taxable income.

Pre-Planning According To The Federal Tax Rate Schedule

It is very important to plan ahead to ensure you do not owe a huge amount when you file your taxes at the end of the year.

There are many tax deductions and credits that can be overlooked if you simply take the standard deductions rather than itemizing. Itemizing may take a little longer but could be well worth the time spent.

Tax calculators can be a big help to help you determine the amount of withholdings you should have coming out of your pay each paycheck.

TurboTax Online offers free tax calculators and deduction maximizers to help you get the biggest refund possible.