Tax Guide

20-25% of Taxpayers will wait until the Last Minute to File

In no time, April 15, will be right around the corner and most of us will either have filed our taxes or will be scrambling to complete our federal and state tax filing.

As reported by the Internal Revenue Service, 20% to 25% of Americans wait until the last two weeks before April 15 to prepare and file their federal and state returns.

A lot of these individuals end up filing for extensions.

Tax Filing Status

Below are the complete tax bracket tables and income tax rates, broken down by the different tax filing status categories:

  • Single / Individual Taxpayers
  • Married Filing Jointly
  • Married Filing Separately
  • Head of Household
  • Qualifying Widow / Widower

Tax Bracket Tables

Single / Individual Taxpayers Tax Brackets & Income Tax Rates

Tax Bracket Table - Single Taxpayers

Tax calculator: To calculate your income tax (as a single individual taxpayer), review the above tax bracket table to find the range for your taxable income. Then compute your expected tax using the associated income tax rate.

For example, if your income is $40,000, then your estimated federal income tax will be: $5,928.75 = $4,991.25 + (0.25 x ($40,000 – $36,250)).

Note that in addition to federal income tax, you’ll still need to pay applicable state taxes, depending on the state in which you reside.

Married Filing Jointly Tax Brackets & Income Tax Rates

Married Tax Brackets - Tax calculator 2013

Tax calculator: To calculate your income tax (as a married couple), review the above table to find the range for your combined taxable income.

Apply the associated tax rate in your calculations

For example, if your combined income is $86,000, then your estimated federal tax will be: $13,357.25 = $9,982.5 + (0.25 x ($86,000 – $72,501))

Married Filing Separately Tax Brackets & Income Tax Rates

Married, But Filing Separately - Federal Income Tax Rates

Tax calculator: To calculate your income tax (as a married couple, but filing separately), review the above table to find the range for your separate your taxable incomes.

Then, conduct your tax calculation using the associated tax rates.

For example, if one of your earned $90,000, then that partner’s estimated federal tax will be: $18,932.47 = $14,228.75 + (0.28 x ($90,000 – $73,201))

Head of Household Tax Brackets & Income Tax Rates

Head of Household Tax Brackets and Income Tax Rates

Tax calculator: As head of household, review the above tax bracket table to find your taxable income. Then, calculate your expected tax using the associated tax rates.

For example, if you earned $90,000, then your estimated federal tax will be: $8,252.25 = $6,652.5 + (0.25 x (55,000 – 48,601))

Qualifying Widow / Widower Tax Brackets & Income Tax Rates

Qualifying Widow, Widower Tax Brackets,  Income Tax Rates

Qualifying Child

A qualifying child is a child who is your son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild)

  • AND, was under the age of 19 at the end of the year and younger than you (or younger than your spouse, if f­iling jointly)
  • OR, was under age 24 at the end of the year, a student, and younger than you (or younger than your spouse, if f­iling jointly)
  • OR, is permanently and totally disabled at any time during the year, regardless of age
  • AND, who is not fi­ling a joint return for the year (or is fi­ling a joint return for the year only to claim a refund of income tax withheld  or estimated tax paid)
  • AND, who lived with you in the United States for more than half of the year

Exceptions to time lived with you.  Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you.

Child Tax Credit

The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children. To claim the child tax credit, you must file Form 1040, Form 1040A, or Form 1040NR.