The 2010 tax brackets are out. Now you can start planning for your 2010 taxes and determine your correct withholding.
As a reminder, tax rates are marginal; you pay tax at each incremental tax rate until you reach your taxable income level.
| Tax Rate | Single | Married Filing Joint | Married Filing Separate | Head of Household |
|---|---|---|---|---|
| 10% | Up to $8,375 | Up to $16,750 | Up to $8,375 | Up to $11,950 |
| 15% | $8,376 – $34,000 | $16,751 – $68,000 | $8,376 – $34,000 | $11,951 – $45,500 |
| 25% | $34,001 – $82,400 | $68,001 – $137,300 | $34,001 – $68,650 | $45,501 – $117,650 |
| 28% | $82,401 – $171,850 | $137,301 – $209,250 | $68,651 – $104,625 | $117,651 – $190,550 |
| 33% | $171,851 – $373,650 | $209,251 – $373,650 | $104,626 – $186,825 | $190,551 – $373,650 |
| 35% | Over $373,650 | Over $373,650 | Over $186,825 | Over $373,650 |
Don’t forget, during 2010 the Make Working Pay Tax Credit reduces part of the tax due for the 10% tax bracket.
In addition, the long term capital gains rate remains at 0% for the 10% and 15% tax brackets, and 15% for all other tax brackets.
Written by Madison
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