The Federal Income Tax brackets and marginal tax rates for 2012 are out, and we’ll take a look at how the changes affect single taxpayers, those who are married filing jointly, those married filing separately, and head of household.
The changes from 2011 to 2012 are fairly small but they can have an impact for those who are at or over a threshold.
By knowing what bracket and marginal rate you may fall in, you can tax plan to lower your taxable income.
Every year the Internal Revenue Service, or IRS, uses inflation data to revise the bracket amounts. Congress sets the marginal rate percentages with changes in the law.
Note the marginal tax rates are remaining the same in 2012 as they were in 2011. It’s the dollar amount of the tax brackets that’s changing.
Before we jump into the changes I want to let you know that a qualifying widow(er) follows the same rates as married filing jointly.
The 10% tax bracket—the lowest marginal tax rate
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