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2012 Federal Income Tax Brackets: IRS Marginal Tax Rates

By Peter Anderson 4 Comments - The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited October 17, 2011.

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Last year around this time we were right in the middle of a contentious debate in Congress about whether or not they would be extending the Bush era tax cuts, and whether or not the Obama administration would sign them into law, essentially making them his own.

In the end, despite not really wanting to Obama did sign them into law because Republicans gave in a few other areas that he and the Democrats were pushing for. Here are some of the things that happened as a result of H.R.4853 last year:

  • Bush tax cuts extended for 2 years (2011-2012).
  • Social Security tax on employee wages dropped from 6.2%  to 4.2% for one year (2011).
  • Estate tax was reinstated at 35%
  • Jobless benefits extended.
  • Tax rates on capital gains and dividends extended for 2 years, even for higher earners.

2012 Federal Income Tax Brackets

So there was a lot of discussion in Congress around the tax related issues last year.  This year probably won’t see as much debate just for the simple fact that many of the tax rates/etc were continued through tax year 2012, so won’t be coming due this year.

2012 Federal Tax Rate Projections

Since the marginal tax rates probably won’t be changing much due to new legislation in Congress this year, we most likely won’t be seeing any major changes to the tax rates. The official IRS tax rates for the 2012 tax year haven’t been released  yet, but several tax related groups have now released their projections of what the rates will most likely be. They are using calculations created by the IRS to figure these things out – which take into account inflation, consumer price index and other things.  I’m just glad we don’t have to figure it out on our own.

The rates haven’t changed much this year from last.  The most we’ll probably be seeing are some slight changes in the bracket ranges due to inflation.

2012 Tax BracketsSingleMarried Filing Jointly
10% Bracket$0 – $8,700$0 – $17,400
15% Bracket$8,701 – $35,350$17,401 – $70,700
25% Bracket$35,351 – $85,650$70,701 – $142,700
28% Bracket$85,651 – $178,650$142,701 – $217,450
33% Bracket$178,651 – $388,350$217,451 – $388,350
35% Bracket$388,350+$388,350+

If you compare to the tax rates we have for 2011, we’re only seeing some slight variations in the bracket ranges.

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+

If you want to check out what the rate ranges have been in past years (besides 2011) to compare, here are our posts for past years.

  • 2009 Federal Income Tax Brackets
  • 2010 Federal Income Tax Brackets
  • 2011 Federal Income Tax Brackets

What Is Changing For 2012 Tax Year?

So what are the main things that are changing for this coming tax year?

  • The standard deduction for married filing jointly is projected to rise to $11,900 in 2012  from $11,600 in 2011.
  • The standard deduction for singles will rise to $5,950  in 2012  from $5,800  in 2011.
  • Personal exemption rises to $3,800 in 2012 from $3,700 in 2011.
  • Tax-bracket rate thresholds increase for each filing status. (Example: For a married couple filing a joint return the taxable-income threshold separating the 28-percent bracket from the 33-percent bracket is $217,450, up from $212,300 in 2011. (see chart above for other range changes)

Don’t forget to be  organized for tax season, figure out what you’ll need to file, and take all the income tax deductions that are available to you.

Related Posts

  • 2011 Federal Income Tax Brackets: IRS Marginal Tax Rates

    The 2011 tax year promises to be one where there will be some significant changes to the marginal tax brackets. What those changes exactly will…

  • 2014 Federal Income Tax Brackets: IRS Marginal Tax Rates

    The 2014 marginal tax rate tables have been released and there are mainly small changes in the tax rate ranges due to inflation. What does…

  • 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…

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Last Edited: 17th October 2011 The content of biblemoneymatters.com is for general information purposes only and does not constitute professional advice. Visitors to biblemoneymatters.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

This article is about: Economy, Taxes

About Peter Anderson

Peter Anderson is a Christian, husband to his beautiful wife Maria, and father to his 2 children. He loves reading and writing about personal finance, and also enjoys a good board game every now and again. You can find out more about him on the about page. Don't forget to say hi on Pinterest, Twitter or Facebook!

Comments

    Share Your Thoughts: Cancel reply

  1. Jenna, Adaptu Community Manager says

    Thanks for the heads up!

    Reply
  2. Brad Haven says

    Peter,

    Have you considered to write about Herman Cain’s 9 9 9 tax plan?

    Brad

    Reply
    • Peter Anderson says

      I haven’t, but to be honest, more because I don’t know a ton about it at this point. I have some inkling that it deals with moving towards a sales tax model vs. income tax? Does that sound right? Consumption tax versus an income tax?

      Reply
  3. UltimateSmartMoney says

    This is a great piece of information. I still think we pay too much taxes… :(

    Reply
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