2012 Tax Rates and Brackets
If you are by any chance worried that you might be paying an extremely high tax rate for 2012 tax brackets, make it a point that you learn as much as you can about the tax bracket for 2012 structure before making any plans or drastic moves to sell any investment or perhaps make a cash or charitable donation.Your knowledge about tax brackets can be a powerful tool so you can allow yourself to make better savings from paying your taxes. If you are unsure about which percentage you fall under or how to file your taxes, we highly recommend speaking with a tax professional.
Tax Brackets are the income tax rates to be imposed on different income group of people. Generally higher tax rates are applied to the higher income group. This escalating imposition of tax rate is known as progressive tax system. The other concept of tax rate imposition is just opposite to the progressive tax system that is tax rate is decreased with the increasing income. This system is known as regressive tax system. Regressive tax system has very rare implementation in the world economy.
The government sometimes takes some motivational approach to some specific income sectors. Sometimes they get tax cut or reduction in tax rates to develop a particular sector and attract more people to this sector. This is done for greater benefit of the state or country.
Taxable income is a very crucial point to apply on the individual/group income. The government provides some rules to exempt a portion of individual/group income from taxation. Basically, the amount, which is determined by the government, spent on fulfilling the fundamental requirements of a person is usually exempted from taxation. If a person/group has any income in excess of the exempted income is called as taxable income.
2012 Tax Bracket Single Married Filing Jointly Head of Household
10% Bracket $0 – $8,700 $0 – $17,400 $0 – $12,400
15% Bracket $8,700 – $35,350 $17,400 – $70,700 $12,400 – $47,350
25% Bracket $35,350 – $85,650 $70,700 – $142,700 $47,350 – $122,300
28% Bracket $85,650 – $178,650 $142,700 – $217,450 $122,300 – $198,050
33% Bracket $178,650 – $388,350 $217,450 – $388,350 $198,050 – $388,350
35% Bracket $388,350+ $388,350+ $388,350+
2012 is an election year, and there is undoubtedly going to be talk about tax rates for 2012 and future adjustments. The income levels of the tax brackets for 2012 are finalized at this time. As per President Obama’s signing of the new bill extending the tax cuts from 2001 all the way to 2012, many are delighted. The said income tax rates will be 10%, 15%, 25%, 28%, 33% and 35% respectively. The new bill on tax cuts has truly made a lot of taxpayers smile mainly due to the tax rates that have remained low instead of being high what with starting at 15% tax rates and capping out at 39.6% tax rate. With a couple tax tips and you can save even more.
The IRS Tax Filing Deadline.
With such taxpayer-friendly tax rates, there is no doubt that the reduced tax slabs will characterize a considerable amount of savings to majority of the taxpayers. As a matter of fact, it is believed that were the bill not signed and approved, the taxpayers would have immediately lost about $3,000 of their income to 2012 tax brackets. The new income levels have been finalized for this year, and we were right on the mark as always. This changes with inflation, and the income levels will be set by the IRS every year. The government income standard deductions as well as the personal exemptions for its US citizens and dependents go through regular adjustments to consider the varying inflation rates. So what happens is that there is a constant change in the personal income tax bracket of the taxpayers. But then you might be surprised when you find out that if 2010 showed the same results of tax brackets with 2011; you will actually see the same figures with the 2012 rates.