Federal Tax Rate Schedule for 2009, 2010
The federal tax rate schedule is going to change again for income earned during 2009. These tax rates will apply to your taxable income. There are many things that can lower your taxable income such as deductions and personal exemptions.
Capital Gains
Although capital gains are technically income they are actually taxed at a different rate that your earned taxable income.
If you are a single filer then the tax rate schedule may look something like this:
- $0-$8,350- If you are in this earning bracket then you will be taxed at 10%.
- $8,350-$33,950- This income bracket will be taxed at 15%.
- $33,950-$82,250- If you are in this earning bracket you will be taxed at 25%.
- $82,250-$171,550- If you are in this high income bracket, your tax rate will be 28%.
- $171,550-$372,950- This level of income will be taxed at 33%.
- Any income above and beyond $372,950 will be taxed at a 35% rate.
Pre-Planning
It is very important to plan ahead to ensure you do not owe a huge amount at the end of the tax year.
There are many deductions and credits that can be overlooked if you simply take the standard deductions rather than itemizing. Itemizing may take a little longer but could be well worth the time spent.
Tax calculators can be a big help to help you determine the amount of withholdings you should have coming out of your pay each paycheck.
TurboTax Online offers free tax calculators and deduction maximizers to help you get the biggest refund possible. Learn More about the Federal Tax Rate Schedule.