2009 Tax Brackets

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For 2009, the six income tax rates for individual taxpayers are 10%, 15%, 25%, 28%, 33%, and 35%.
In addition to cutting tax rates, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 created the 10% tax bracket for lower incomes.
In 2009, for single taxpayers and married persons filing a separate return, the first $8,350 of income is taxed at this rate. For married persons filing a joint return, the first $16,700 is taxed at 10%. For persons filing as head of household, the first $11,950 is taxed at the 10% rate.
It helps to think of your tax rate in terms of a marginal tax rate. This is the tax rate on the last dollar of income that you earned. As your taxable income increases, you are taxed at a higher tax rate as a result of being bumped into a higher income tax bracket.
The following tables show the cutoff points in taxable income for 2009 that mark each income tax bracket:
Table A: Single tax return:
If taxable
income is:
Amount of tax
that you owe is:
More than:However, not over:This amount
(or %)
plus % of:
Amount over:
$0
$8,35010%--
$8,350$33,950$835 + 15%$8,350
$33,950
$82,250$4,675 + 25%$33,950
$82,250$171,550$16,750 + 28%$82,250
$171,550$372,950$41,754 + 33%$171,550
$372,950--$108,216 + 35%$372,950

Table B: Married Filing Jointly (MFJ) or Qualifying Widow(er):
If taxable
income is:
Amount of tax
that you owe is:
More than:However, not over:This amount
(or %)
plus % of:
Amount over:
$0
$16,70010%--
$16,700$67,900$1,670 + 15% $16,700
$67,900
$137,050$9,350 + 25%$67,900
$137,050$208,850$26,638 + 28% $137,050
$208,850$372,950$46,742 + 33%$208,850
$372,950--$100,895 + 35%$372,950

Table C: Head of Household tax return:
If taxable
income is:
Amount of tax
that you owe is:
More than:However, not over:This amount
(or %)
plus % of:
Amount over:
$0
$11,95010%--
$11,950$45,500$1,195 + 15%$11,950
$45,500
$117,450$6,228 + 25%$45,500
$117,450$190,200$24,215 + 28% $117,450
$190,200$372,950$44,585 + 33%$190,200
$372,950--$104,893 + 35%$372,950

Table D: Married Filing Separate (MFS) return:
If taxable
income is:
Amount of tax
that you owe is:
More than:However, not over:This amount
(or %)
plus % of:
Amount over:
$0
$8,35010%--
$8,350$33,950$835 + 15%$8,350
$33,950
$68,525$4,675 + 25%$33,950
$68,525$104,425$13,319 + 28%$68,525
$104,425$186,475$23,371 + 33%$104,425
$186,475--$50,447 + 35%$186,475

For example, say you file a single return and have taxable income of $40,000 in 2009. Using Table A, above, your tax liability would be $4,675 plus 25% of income above $33,950, or $6,050 in your case. That works out to be $1,513 for a total federal income tax liability of $6,188.
To prevent you from being bumped into the next-higher bracket as a result of a cost-of-living wage increase, the IRS adjusts upward the amount of income that can be earned for each tax bracket every year. This phenomenon of being bumped into the next-higher tax bracket is sometimes called "bracket creep."
2008-07-21 17:03:59
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