The federal tax table defines the percentage amount that you are required to pay tax on money you earn during the year. The amount you earn will dictate medium in which you fit.

There are several different ways to calculate how much tax you’re likely to pay, but your first step should be to consider the Federal Tax Table.

The following Federal Tax Table is for a single person:

* If you earn between $0 and $8,350 then your tax bracket is 10%

* If you earn between $8,350 and $33,950 then your tax bracket is 15%

* If you earn between $ 33,950 and $ 82,250, your tax bracket is 25%

* If you earn between $ 82,250 and $ 171,550, your tax bracket is 28%

* If you earn between $ 171,550 and $ 372,950, your tax bracket is 33%

* If you earn between $ 372.950 and your tax bracket is 35%

Following the federal tax table for a married couple filing jointly:

* If you earn between $ 0 and $ 16,700, your tax bracket is 10%

* If you earn between $16,700 and $67,900 then your tax bracket is 15%

* If you earn between $67,900 and $137,050 then your tax bracket is 25%

* If you earn between $137,050 and $208,850 then your tax bracket is 28%

* If you earn between $ 208,850 and $ 372,950, your tax bracket is 33%

* If you earn between $ 372.950 and your tax bracket is 35%

Before the time comes to file your income tax return for the IRS, you could potentially save some more money.

You may even be able to increase the amount of tax return you could receive by figuring out how much you’ve earned throughout the financial year and then working through how many possible tax deductions you’re eligible for.

When you’ve calculated what your new taxable income is likely to be after you’ve factored in your deductions, then you may find that you’ve reduced your income far enough to drop into a lower bracket on the federal tax table.

Another option you might want to consider is that if you are currently partnered and you usually file your taxes as married filing jointly, then take some time to work out the difference in tax rates if you were to file your taxes instead as married filing separately.

The Federal Tax Table shows a distinct difference in the income amounts allowable before you jump into the next bracket.

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This entry was posted on Monday, June 29th, 2009 at 04:59 and is filed under law. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.