What are the Tax Brackets for 2011, 2012?

If you know what tax bracket you fall into then you will be able to estimate the amount of additional tax you’ll pay if your income increases or decreases.

Some people think their tax bracket is based on how much money they make from their job but, this is not true. Your tax bracket is determined by your taxable income.

It doesn’t matter what the source of the income is. The taxable income is the combination of wages earned and all other sources of income like, pensions, dividend income or other sources. You get the idea.

Tax Rates

The tax rate starts at 10% and goes all the way up to 35%. Your filing status will also determine what tax bracket you are placed into. If you’re married and combined you made $17,000 or less you will be in the 10% tax bracket for the year 2009. If your married and combined made over $379,150 then, you will be in the 35% tax bracket for 2009.

Changing Tax Brackets

You might be wondering where the line is for moving up into a higher tax rate. Some people think their overall tax rate will jump up sharply but, it will not and here’s why. When you reach a higher tax bracket, and additional income that put you into the higher rate will be taxed at the higher rate. The income required to reach that level is still taxed at the lower rate.

For example, if you made $100 over the 10% tax bracket then, only the $100 will be taxed at 15%. Now there’s some good news for you.

Pay Stub Withholding Rate

If you think your pay stub will show you your tax bracket then, you’re wrong. Your withholding rate on your pay stub may show a twenty percent withholding but, it’s just an estimate. A twenty percent tax bracket rate doesn’t exist. An online tax preparation software program can help you find your individual tax bracket.

Finding Your Individual Tax Bracket

If you would like to find your tax bracket you can use Turbo Tax Online. After answering a few simple questions like, “Are you married?” the tax return software goes to work and will show you exactly what tax bracket you are placed into. Using an online tax return program takes all of the guessing and worrying right out of the picture. What a relief.

Here is a link to the IRS Federal tax bracket tables.

Let the Tax Experts do all the Hard Work

Wouldn’t it be nice to know your tax return is completely optimized to give you the best possible outcome? You can have that today with the click of a button. Right in the privacy of your own home and you can even get comfortable in your pajamas if you want to.

As a matter of fact TurboTax Online allows you to start and stop whenever you want. Perhaps the youngsters need attention or you just want a break. You are in full control and safe and secure. Give TurboTax 2012 a try today. Visit their website to discover the many benefits of using their tax return software that guarantees the biggest refund possible!