What is a Tax Bracket? | FINANCE-DEBT RELIEF

Currently, the tax brackets 2011 are divided into six primary sections, which start at 10% all the way up to the highest of thirty-five percent. It is important to know or determine which tax bracket that you are going to be in for 2011 to be able to estimate your total tax withholding or tax estimates during the course of the year. Prior to being able to figuring out your tax bracket for 2011, the first thing you must decide is what your filing status is. This is a very important step. No matter what you choose, your 2011 filing status will not only affect the outcomes on your tax bracket, but it will also change your standard deduction and eligibility for tax credits. Listed here is a quick description of the different filing statuses for 2011 and how they affect your tax bracket 2011. Each status behaves a little differently, so we are going to determine an estimation of the tax liability for 2011, supposing you make $100,000.

The first filing status for 2011 is ?single.? You are qualified to file your 2011 tax return as a single man or women if you aren?t married, were wedded but legally separated by the end of 2011, or widowed in the year of 2011 and not remarried. Pretty much for you to file as a single man or women, you have to be single or otherwise not married on the last day of the year. With the event that you file single this year, your standard deduction will be $5,800. Those who elect to file single traditionally share the two smallest standard deductions along with tax brackets with ?married filing separately? persons. Listed here are the tax brackets 2011 for single people:

Taxable Income Tax Rate $0-$8,500 10% $8,500-$34,500 15% $34,500-$83,600 25% $83,600-$174,400 28% $174,400-$379,150 33% $379,150+ 35%

The other filing status for 2011 is ?married filing jointly.? Married filing jointly is a special filing status for married couples. Husbands and wives have the opportunity to benefit from a larger standard deduction as well as more preferential treatment regarding tax brackets and tax credits. The most self-evident reason for the preferential treatment is that the federal government wishes to stimulate marriage and procreation. For those who elect to be a married filing jointly couple, you have access to a standard deduction of $11,600 for 2011. If you notice, this number is exactly double the amount of the single deduction. Also some of the tax rates end up being more favorable. The following tables are the tax brackets 2011 for married filing jointly taxpayers:

Taxable Income Tax Rate $0-$17,000 10% $17,000-$69,000 15% $69,000-$139,350 25% $139,350-$212,300 28% $212,300-$379,150 33% $379,150+ 35%

The third filing status is ?married filing separately.? You might have deduced from the title that this filing status is for currently married however they are separated or would like to keep on being fiscally separated. Many of these couples are in the steps involved in divorcing at the conclusion of the year. In accordance with the law, these individuals are nevertheless married despite the fact that they are now in the process of divorce. Generally speaking, if you are married on December 31, 2011, the tax code treats you as married whether you are divorcing or not. There are a lot of couples in the middle of a divorce that prefer to keep finances separate, so they can file married filing separately. By filing independently of one another, each individual will receive a standard deduction of $5,800-the exact same as a single man or women. Although the standard deduction is the same as a single taxpayer, the tax brackets is not. People married filing separately have a lot more unfavorable tax brackets. The columns below are the tax brackets 2011 for married filing separately taxpayers:

Taxable Income Tax Rate $0-$8,500 10% $8,500-$34,500 15% $34,500-$69,675 25% $69,675-$106,150 28% $106,150-$189,575 33% $189,575+ 35%

Your fourth filing status is ?head of household.? If you want to file your 2011 tax return as head of household, you need to be single on December 31, 2011. Maybe you have never been wedded, or you may have been divorced or widowed. You have to also provide a house and at least 50 % of the living expenses for one if not more dependents. More often than not these types of dependents are small children, disabled persons, and the elderly. Head of household people are able to reap the benefits of a bigger standard deduction of $8,700 for 2011. Head of household citizens will also get a unique variety of tax brackets. The following are the tax brackets 2011 for head of household taxpayers:

Taxable Income Tax Rate $0-$12,150 10% $12,150-$46,250 15% $46,250-$119,400 25% $119,400-$193,350 28% $193,350-$379,150 33% $379,150+ 35%

If you are interested in learning more about the 2011 tax brackets or other tax deductions and tax credits check out some of these helpful articles about Tax Brackets 2011.

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