Federal tax rates: what bracket do you fall under? - By: Mark Jensen

The Federal tax rates go up each and every year. Each year when an American tax payer does their taxes they see this. But before you can figure out what your tax rate is going to be you must first know your gross income and then deduct all costs and allowances you can.

Every American expects certain services out of their government and they know that taxes are how they are paid for, but no one really ever likes paying them. Paying taxes, like death, is just a fact of life.

The lowest bracket anyone can be in is the married filing jointly. The $16,051 to $65,100 income range is only taxed at 15% while if you were single the 15% bracket would only be from $8,026 to $32,550 as an income range. This is a significant difference. It appears the government makes it easier for the married couple. This is unless they are filing separately, then they fall into the same calculated bracket as the single individual.

Capital Gains Tax is another area the government gets a nice healthy amount. This bracket is taxed at 25% for the sales of all of your assets that are sold in that tax year.

Compared to capital gains, your dividends are given a break at being taxed only 15%. This is to help the group that always votes, the elderly. Most of the elderly live off their dividends after retirement. If this bracket was taxed to heavily, most politicians would be voted out of office.

So know your tax rates and what bracket you fall in and learn where your money goes.

Note that while we believe the above information to be correct, we are not tax attorneys. You should consult a tax attourney or a licensed accountant for tax advice. Please be sure to read our disclaimer, available in the sidebar to the left.

About the Author

It is very important to seek qualified council when dealing with income tax items and related matters. Research on the Internet is a great approach for keeping your hourly lawyer bills low, but always check your findings with a licensed attorney or accounting professional before making any financial or business decisions. If you need more information about an income tax audit or other tax topics, visit us today at http://www.irs-help-tax.com.

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