Federal Income Tax Brackets

Posted in Tax Resource Center by mcbrideflv on July 11th, 2012

The federal income tax in the United States is a progressive model where individuals who earn higher wages are taxed at a higher percentage and vice versa. The federal tax brackets represent the divisions at which tax rates are implemented; these federal tax rates will change based on a given fiscal year in accordance with inflation, legislation and the macro-economic standing of the country. In essence, the federal tax brackets represent cutoff values for an earner’s taxable income—incomes past a certain point will be taxed at the next available tax bracket.

Additionally the tax rates will fluctuate for individuals who file separately or for those couples who file joint returns. The tax rate is dependent on income, meaning the amount of money an individual earns from his or her job; however, the positioning within federal tax brackets will also fluctuate given the delivery of tax deductions, tax credits, and the status of the filing.

http://en.wikipedia.org/wiki/Tax_bracket – Tax_brackets_in_the_United_States


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