2011 Federal Income Tax Brackets: IRS Marginal Tax Rate Changes To Be Aware Of

The Congress and President Obama signed into a law a week or two ago an extension of the Bush era tax cuts, H.R.4853.  We had been speculating for quite some time that Congress would actually raise the tax rates on the highest income earners only, but after the November election and solid Republican gains and new control of the House, President Obama decided to compromise and extend the tax cuts for everyone for 2 years.

2011 Federal Income Tax Brackets

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With all that said, what does that mean for the tax rates for 2011?  It means that they will remain essentially unchanged except for some minor tax rate range changes and standard deduction increases due to inflation.

Here are the 2011 federal income tax brackets.

2011 Tax BracketsSingleMarried Filing Jointly
10% Bracket$0 – $8,500$0 – $17,000
15% Bracket$8,500 – $34,500$17,000 – $69,000
25% Bracket$34,500 – $83,600$69,000 – $139,500
28% Bracket$83,600 – $174,400$139,500 – $212,300
33% Bracket$174,400 – $379,150$212,300 – $379,150
35% Bracket$379,150+$379,150+

Changes In 2011 Tax Brackets

So here are the changes that we see in the 2011 tax brackets from the IRS:

  • The value of each personal and dependent exemption, available to most taxpayers, is $3,700, up $50 from 2010.
  • The new standard deduction is $11,600 for married couples filing a joint return, up $200.
  • The new standard deduction is $5,800 for singles and married individuals filing separately, up $100, and $8,500 for heads of household, also up $100.
  • The additional standard deduction for blind people and senior citizens is $1,150 for married individuals, up $50, and $1,450 for singles and heads of household, also up $50.
  • Tax-bracket thresholds increase for each filing status. (For a married couple filing a joint return, for example, the taxable-income threshold separating the 25-percent bracket from the 28-percent bracket is $139,500, up from $137,300 in 2010. (see chart above for other range changes)
  • The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.
  • The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.

If you’d like to compare the marginal tax rates for 2009, 2010 and 2011, you can check the past rates here:

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!  While we’re at it, here’s a list of things you’ll need for doing your 2010 taxes.  Best of luck!

What are your thoughts on the changes to the 2011 tax brackets? Tell us your thoughts in the comments.

Last Edited: 29th December 2010

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    Share Your Thoughts:

    • says

      Since the basic tax rates were extended in the tax cut extension, I can’t imagine it would have changed very much for anyone. Because of the way the marginal tax rates work, even if someone was bumped up a bracket, just that last amount of income would be taxed at a higher rate. If that’s the case they may want to consider doing something to reduce their taxable income and bump themselves back down a bracket – like making an extra mortgage payment for the mortgage interest deduction – or contributing to a pre-tax retirement account.

  1. says

    It looks like I fall in the 28% but I might end up taking home a bit more money this year from the federal government, but my city and state raised their taxes so it goes back to the state. In one hand and out the other.

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