Where Do You Fall in the Progressive Tax System?
Although most people would rather run a marathon than sit down for a few hours to do their taxes, there is hope that you won't be out of breath if you use the right tools. As you may have already discovered through your paychecks; the more you earn, the more taxes the IRS withholds. This phenomenon is otherwise known as a progressive tax system. In order to make it fair for everyone, cutoffs for taxable incomes have been considered and implemented into a tax rate schedule. With all of that said, let's figure out which tax bracket you will fall into this year. Before peeking at the tables below though, determine your taxable income. (You will find this information clearly stated on your 2009 tax return).
Single
| If taxable income is over- | but not over- | the tax is- |
| $0 | $8,350 | 10% of the amount over $0 |
| $8,350 | $33,950 | $835 plus 15% of the amount over $8,350 |
| $33,950 | $82,250 | $4,675 plus 25% of the amount over $33,950 |
| $82,250 | $171,550 | $16,750 plus 28% of the amount over $82,250 |
| $171,550 | $372,950 | $41,754 plus 33% of the amount over $171,550 |
| $372,950 | No limit | $108,216 plus 35% of the amount over $372,950 |
Married Filing Jointly or Qualifying Widow (Widower)
| If taxable income is over- | but not over- | the tax is- |
| $0 | $16,700 | 10% of the amount over $0 |
| $16,700 | $67,900 | $1,670 plus 15% of the amount over $16,700 |
| $67,900 | $137,050 | $9,350 plus 25% of the amount over $67,900 |
| $137,050 | $208,850 | $26,637.50 plus 28% of the amount over $137,050 |
| $208,850 | $372,950 | $46,741.50 plus 33% of the amount over $208,850 |
| $372,950 | No limit | $100,894.50 plus 35% of the amount over $372,950 |
Married Filing Separately
| If taxable income is over- | but not over- | the tax is- |
| $0 | $8,350 | 10% of the amount over $0 |
| $8,350 | $33,950 | $835 plus 15% of the amount over $8,350 |
| $33,950 | $68,525 | $4,675 plus 25% of the amount over $33,950 |
| $68,525 | $104,425 | $13,318.75 plus 28% of the amount over $68,525 |
| $104,425 | $186,475 | $23,370.75 plus 33% of the amount over $104,425 |
| $186,475 | No limit | $50,447.25 plus 35% of the amount over $186,475 |
Head of Household
| If taxable income is over- | but not over- | the tax is- |
| $0 | $11,950 | 10% of the amount over $0 |
| $11,950 | $45,500 | $1,195.00 plus 15% of the amount over $11,950 |
| $45,500 | $117,450 | $6,227.50 plus 25% of the amount over $45,500 |
| $117,450 | $190,200 | $24,215.00 plus 28% of the amount over $117,450 |
| $190,200 | $372,950 | $44,585.00 plus 33% of the amount over $190,200 |
| $372,950 | No limit | $104,892.50 plus 35% of the amount over $372,950 |
With the help of these tax rate schedules, you can conveniently and directly verify the percentage of your level of taxable income. For example, if you are a single filer and your 2009 taxable income is $25,000, then you are in the 15% bracket. This table can also be very useful to figure out your tax savings for any tax-deductible expenses such as charitable giving. Under the same scenario, if you fall into the 15% tax bracket, you will save 15 cents for every dollar you have given as charitable contributions.