The 2011 Income tax rates are here. You can use this table to calculate the tax bill that you owe to the IRS. Remember that these tables are the rates that you pay on TAXABLE income which is certainly less that your gross income. All those deductions and exemptions for everything from your home mortgage interest to your state income taxes, charitable deductions, and even deductions for having kids really do add up. Here's a list of the 2011 income tax rates:
2011 Income Tax Rates
How to Use this Table:
The figures above represent the tax rate on your taxable income which is calculated by taking your normal "gross income" and subtracting everything from your 401(K) contributions to various deductions. Once you have your taxable income, you look would apply the tax rates above to each portion of your income from each bracket. For instance, if you are single and you have taxable income of $100,000 you would calculate your income tax as follows:
10% of $8,500 + 15% of ($34,500 - $8,500) + 25% of (83,600 - 34,500) + 28% (100,000 - $83,600) = $21,617.
So while your marginal tax rate is 28%, your effective tax rate is 21.6%. Is this your total amount of federal taxes? Not exactly. Its possible that you might be subject to the dreaded Alernative Minimum Tax (AMT) and in addition, you might have child tax credits which could reduce this amount. Of course, this isn't the total amount that you send to the feds either. In addition, you paid Social Security and Medicare taxes so your burden is considerably higher.
For those of you planning on filing at the last minute, the deadline for normal filing is April 17, 2012. Good luck on your 2011 income tax return.
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