Income tax brackets were created by the federal government as a way to collect taxes from the American people. Depending on which tax bracket that you fall into, you could pay up to 35% of your income to the federal government. The income brackets for 2009 consist of six tax rates, with each tax bracket corresponding to a certain tax rate. Tax brackets consist of a particular income range based on an individual’s taxable income. Individuals with lower incomes fall into the lower tax brackets and pay the least in taxes while higher income earners fall into the higher income brackets and pay the most in taxes.
The income tax brackets for 2009 consist of 6 tax rates. The lowest tax bracket is taxed at the 10% level. This bracket includes incomes up to $8,350 for singles and $16,700 for married filing jointly. The next tax bracket for individuals who have a taxable income of $8,351 and $33,950 or for couples that earn between $16,700 and $67,900. This bracket is taxed at the 15% level. Individuals who earn between $33,951 and $82,250 or couples that earn $67,900 to $137,050 fall into the third tax bracket and are taxed at the 25% level. Other tax brackets include rates of 28%, 32% and 35%. If you would like more information on the income tax brackets for 2009, take a look at the tax tables located on the official IRS website.
It is important to remember that your entire income is not taxed at the tax bracket that you fall into. Your taxes are calculated on the basis of how much you earn in each tax bracket. If you only earn $3,000 within the 25% tax bracket, your taxes will be $750 on the $3,000 and the remainder of your taxes will be calculated at 15% and below. In essence, you may fall into the 25% tax bracket but the overall percentage of taxes that you pay may only be 18%.
Author: Greg Jackson