By William Perez. Tax Planning: U.S. Expert
William Perez has worked as a tax professional since 2004. He earned the enrolled agent designation by passing a comprehensive examination on federal taxes and maintains his credential by taking continuing education classes.
For the year 2011, the same tax rates that applied in 2010 have been extended to apply to the years 2011 and 2012. The Tax Relief Act of 2010 temporarily extends the existing tax rate structure for two more years. Tax rates changed in the year 2013 as a result of the American Taxpayer Relief Act.
Until the Tax Relief Act was passed, the tax rates for 2011 were scheduled to change as follows: the 10% rate would have been collapsed into the 15% rate; the 25% rate would have become 28%, the 28% rate would have become 31%, the 33% rate would have become 36%, and the 35% rate would have become
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These tax rate changes will take effect beginning in 2013 absent further legislation.
Capital gain income might be taxed at different rates. There are special capital gains tax rates for dividends, long-term investments, collectibles, and certain types of real estate.
Single Filing Status
- 15% on taxable income over $8,500 to $34,500, plus
- 25% on taxable income over $34,500 to $83,600, plus
- 28% on taxable income over $83,600 to $174,400, plus
- 33% on taxable income over $174,400 to $379,150, plus
- 35% on taxable income over $379,150.
Married Filing Jointly or Qualifying Widow(er) Filing Status[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]
- 10% on taxable income from $0 to $17,000, plus
- 15% on taxable income over $17,000 to $69,000, plus
- 25% on taxable income over $69,000 to $139,350, plus