IRS Income Tax Brackets for 2011, 2012

Knowing what IRS tax bracket you’re in is one of the best ways to prepare for tax season, especially when your unsure which bracket you fall into.

Some changes have occurred to the income requirements of each bracket, so it’s certainly worth looking into the IRS Federal tax brackets to see where you are.

One of the important things to understand about tax brackets is that you are only taxed a certain percentage for the money you make in each bracket.

This may seem unclear at first, but here’s an example: Fred makes $80,000 a year and is due for a small raise that will bring him up to $85,000 a year. The 25% bracket stops at $83,600, so Fred’s entire income will now be taxed at 28%, right? Actually, that’s not how it works!

The first $83,600 of Fred’s income will still be taxed at the old 25% rate and only the extra money he made above the 25% tax bracket will be taxed at the 28% rate.

Here are the tax rate schedules for 2011:

Single Filing Status

• 10% on a yearly income of $0 - $8,500
• 15% on a yearly income of $8,501 - $34,500
• 25% on a yearly income of $34,501 - $83,600
• 28% on a yearly income of $83,601 - $174,400
• 33% on a yearly income of $174,401 - $379,150
• 35% on a yearly income of $379,150 or higher

  
  

  Married Filing Jointly or Qualifying Widow(er)
• 10% on a yearly income of $0 - $17,000
• 15% on a yearly income of $17,001 - $69,000
• 25% on a yearly income of $69,001 - $139,350
• 28% on a yearly income of $139,351 - $212,300
• 33% on a yearly income of $212,301 - $379,150
• 35% on a yearly income of $379,150 or higher

There is certainly more to learn about IRS tax brackets. A good place to do this is at TurboTax Online, where you can not only read about tax brackets, but you can even file your return by following guided instructions.