Two things are sure in life, death and taxes. Tax season is coming up again, and if you're not dead – you'll be paying taxes!
The 2010 tax rates have been released by the IRS, so if you're concerned about what marginal tax rate you'll fall into in the coming year, you can now check the official IRS marginal tax rate tables. For more of a discussion on what exactly marginal tax rates are, check out this article: Marginal Tax Rates.
Official IRS Tax Rate Schedule Updates For Tax Year 2010
|Tax Bracket||Single||Married Filing Jointly|
|10% Bracket||$0 – $8,375||$0 – $16,750|
|15% Bracket||$8,375 – $34,000||$16,750 – $68,000|
|25% Bracket||$34,000 – $82,400||$68,000 – $137,300|
|28% Bracket||$82,400 – $171,850||$137,300 – $209,250|
|33% Bracket||$171,850 – $373,650||$209,250 – $373,650|
Not much is changing for 2010. The main changes are some minor revisions in various tax bracket thresholds. From IRS.gov
- Personal exemption remains the same: The value of each personal and dependency exemption available to most taxpayers is $3,650, unchanged from 2009.
- Standard deduction changes slightly for head of household, remains unchanged for other status: The new standard deduction for heads of household is $8,400, up from $8,350 in 2009. For other taxpayers, the standard deduction remains unchanged at $11,400 for married couples filing a joint return and $5,700 for singles and married individuals filing separately. Nearly two out of three taxpayers take the standard deduction rather than itemizing deductions, such as mortgage interest, charitable contributions, and state and local taxes.
- Tax brackets see minor adjustments: Various tax bracket thresholds will see minor adjustments. For example, for a married couple filing a joint return the taxable income threshold separating the 15 percent bracket from the 25 percent bracket is $68,000, up from $67,900 in 2009. (my filing status)
- Gift tax exclusion remains unchanged: The annual gift tax exclusion remains unchanged at $13,000.
- Traditional and Roth IRA Contribution Limits: The standard IRA contribution limit for 2010 will remain unchanged at $5,000. The catch up contribution limit for those 50 or older will remain at $6,000 as well.
If you'd like to compare the marginal tax rates for 2009 to the rates for 2010, you can check them here. 2009 Federal Income Tax Brackets. Don't forget to take all of your tax deductions this year, and make sure you organize your tax documents ahead of time – during the year!