How to Compute a Tax Bracket
Your IRS tax bracket is the percentage rate at which some of your money will be taxed. The Federal Government requires that you pay each tax bracket's percentage on the income that falls within your specific bracket. You will then find the highest percentage and that is considered your tax bracket.
What You'll Need:
- Most recent tax returns
- Computer with access to the Internet
- Gather your most recent tax returns and locate your adjusted gross income. If you don't have access to your most recent tax returns, you can add up the amount of money that you anticipate making this year less any deductions. Don't forget to consider winnings, gifts, and all other taxable revenue as well. This will assist you with getting a fairly accurate account of your tax bracket.
- Determine what your filing status is, this is commonly your martial status. Your status for the year is based on your status on December 31 of that year. Therefore, if you get married on December 1, the IRS will consider you married for the entire year.
- Visit the IRS website and look over the tax brackets for all income: 10 percent, 15 percent, 25 percent, 28 percent, 33 percent and 35 percent. Ensure that the IRS tax table you are viewing is current for the current tax year. Your bracket will be based on your filing status and income. Keep in mind, tax rate schedules change from year to year, so ensure that the information you are viewing is the most current.