How to Determine Your Federal Tax Bracket
Use the correct form., Estimate your adjusted gross income., Figure out your deductions., Subtract your deductions., Determine your filing status., Determine if you are filing as single or married filing separately., Determine if you are filing as...
Step-by-Step Guide
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Step 1: Use the correct form.
In order to determine your taxable income, start by selecting the correct IRS 1040 form to file with.
For example, there are forms 1040EZ and 1040A that rely on meeting certain conditions, like having under $100,000 in taxable income.
See the IRS website for more information., Your adjusted gross income will be the amount you will make in the current year, minus any pre-tax adjustments to your income, like IRA or 401 K contributions.
Check your pay stubs, last year's W-2 or last year's tax return to get a more accurate estimate for the money you're likely to make.
Taxable income from the last year you file can be found on:
Line 43, if you filed Form
1040.
Line 27, if you filed Form 1040A.
Line 6, if you filed Form 1040EZ., If you plan to itemize your deductions, you may want to do a general estimate based on last year's return, if your expenses are similar.
If you don't plan to itemize your deductions, determine your standard deduction amount based on official IRS standards.
Standard deduction amounts change from year to year, and you'll always need to double-check against the official IRS numbers.In tax year 2016, the standard deduction for:
Single or married filing separately was $6,300 Married or qualified widow(er)s was $12,600 Head of household was $9,300 You also need to determine your personal deduction threshold each year you file taxes, if necessary.
The personal deduction threshold set in 2016 is currently $4050., Once you've subtracted your deductions from your adjusted gross income, the result is your taxable income.
You will use this figure to determine your tax bracket. , The IRS establishes different tax bracket depending on your filing status.
Your filing status is where you indicate whether you are filing as a single person, married couple, or head of household.
Figure out your filing status, then scroll down until you see the taxable income amount you calculated in the first section, and learn what percentage of that income will be taxed., Use the "Single" filing status if you are unmarried, divorced or legally separated as of the last day of the current tax year.
If your taxable income is:
Less than $9,075, your tax bracket is 10% Between $9,075 and $36,900, your tax bracket is 15% Between $36,900 and $89,350, your tax bracket is 25% Between $89,350 and $186,350, your tax bracket is 28% Between $186,350 and $405,100, your tax bracket is 33% Between $405,100 and $406,750, your tax bracket is 35% Over $406,750, your tax bracket is
39.6%, Use the "Married" filing status if you plan to file your taxes jointly with your spouse.
This means you will use your combined income as the determination of your tax bracket.
You can also use this bracket if your spouse died during the current tax year.
Use the "Qualified widow(er)" if your spouse died in the previous tax year, you filed jointly the year before, and have at least one dependent.
If your taxable income is:
Less than $18,150, your tax bracket is 10% Between $18,150 and $73,800, your tax bracket is 15% Between $73,800 and $148,850, your tax bracket is 25% Between $148,850 and $226,850, your tax bracket is 28% Between $226,850 and $405,100, your tax bracket is 33% Between $405,100 and $457,600, your tax bracket is 35% Over $457,600, your tax bracket is
39.6%, Use the "Head of Household" filing status if you are unmarried, have at least one dependent living with you and if you provide over half of the money required to keep up your household.
You can also file for this if you provide over half the income for the household, have at least one dependent and your spouse did not live with you for the last six months of the year.
If your taxable income is:
Less than $12,950, your tax bracket is 10% Between $12,950 and $49,400, your tax bracket is 15% Between $49,400 and $127,550, your tax bracket is 25% Between $127,550 and $206,600, your tax bracket is 28% Between $206,600 and $405,100, your tax bracket is 33% Between $405,100 and $432,200, your tax bracket is 35% Over $432,200, your tax bracket is
39.6% -
Step 2: Estimate your adjusted gross income.
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Step 3: Figure out your deductions.
-
Step 4: Subtract your deductions.
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Step 5: Determine your filing status.
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Step 6: Determine if you are filing as single or married filing separately.
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Step 7: Determine if you are filing as married or as a qualified Widow(er).
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Step 8: Determine if you are filing as a head of household.
Detailed Guide
In order to determine your taxable income, start by selecting the correct IRS 1040 form to file with.
For example, there are forms 1040EZ and 1040A that rely on meeting certain conditions, like having under $100,000 in taxable income.
See the IRS website for more information., Your adjusted gross income will be the amount you will make in the current year, minus any pre-tax adjustments to your income, like IRA or 401 K contributions.
Check your pay stubs, last year's W-2 or last year's tax return to get a more accurate estimate for the money you're likely to make.
Taxable income from the last year you file can be found on:
Line 43, if you filed Form
1040.
Line 27, if you filed Form 1040A.
Line 6, if you filed Form 1040EZ., If you plan to itemize your deductions, you may want to do a general estimate based on last year's return, if your expenses are similar.
If you don't plan to itemize your deductions, determine your standard deduction amount based on official IRS standards.
Standard deduction amounts change from year to year, and you'll always need to double-check against the official IRS numbers.In tax year 2016, the standard deduction for:
Single or married filing separately was $6,300 Married or qualified widow(er)s was $12,600 Head of household was $9,300 You also need to determine your personal deduction threshold each year you file taxes, if necessary.
The personal deduction threshold set in 2016 is currently $4050., Once you've subtracted your deductions from your adjusted gross income, the result is your taxable income.
You will use this figure to determine your tax bracket. , The IRS establishes different tax bracket depending on your filing status.
Your filing status is where you indicate whether you are filing as a single person, married couple, or head of household.
Figure out your filing status, then scroll down until you see the taxable income amount you calculated in the first section, and learn what percentage of that income will be taxed., Use the "Single" filing status if you are unmarried, divorced or legally separated as of the last day of the current tax year.
If your taxable income is:
Less than $9,075, your tax bracket is 10% Between $9,075 and $36,900, your tax bracket is 15% Between $36,900 and $89,350, your tax bracket is 25% Between $89,350 and $186,350, your tax bracket is 28% Between $186,350 and $405,100, your tax bracket is 33% Between $405,100 and $406,750, your tax bracket is 35% Over $406,750, your tax bracket is
39.6%, Use the "Married" filing status if you plan to file your taxes jointly with your spouse.
This means you will use your combined income as the determination of your tax bracket.
You can also use this bracket if your spouse died during the current tax year.
Use the "Qualified widow(er)" if your spouse died in the previous tax year, you filed jointly the year before, and have at least one dependent.
If your taxable income is:
Less than $18,150, your tax bracket is 10% Between $18,150 and $73,800, your tax bracket is 15% Between $73,800 and $148,850, your tax bracket is 25% Between $148,850 and $226,850, your tax bracket is 28% Between $226,850 and $405,100, your tax bracket is 33% Between $405,100 and $457,600, your tax bracket is 35% Over $457,600, your tax bracket is
39.6%, Use the "Head of Household" filing status if you are unmarried, have at least one dependent living with you and if you provide over half of the money required to keep up your household.
You can also file for this if you provide over half the income for the household, have at least one dependent and your spouse did not live with you for the last six months of the year.
If your taxable income is:
Less than $12,950, your tax bracket is 10% Between $12,950 and $49,400, your tax bracket is 15% Between $49,400 and $127,550, your tax bracket is 25% Between $127,550 and $206,600, your tax bracket is 28% Between $206,600 and $405,100, your tax bracket is 33% Between $405,100 and $432,200, your tax bracket is 35% Over $432,200, your tax bracket is
39.6%
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Carol Coleman
Brings years of experience writing about home improvement and related subjects.
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