Tax Rate | Single Filer | Married Filing Jointly |
10% | $0-$8,500 | $0-$17,000 |
15% | $8,5001-$34,500 | $17,001-$69,000 |
25% | $34,501-$83,600 | $69,001-$139,500 |
28% | $83,601-$174,400 | $139,501-$212,300 |
33% | $174,401-$379,150 | $212,301-$379,150 |
35% | Over $379,150 | Over $379,150 |
A few months ago, it was suggested that there should be a tax raise for families earning over $250,000. Needless to say, judging by the chart above, this didn't happen. Tax rates remained the same for everyone. Actually, this bi-partisan bill added on a deal to cut payroll taxes by 2% in order to stimulate the economy more. This can mean roughly a $1,000 saving for a single filer with an annual income with $50,000. For the next few months, make sure you check your pay stubs to see if your payroll tax rate decreased from 6.2% to 4.2%. Your employer has until March 31 to make adjustments.
All in all, this is a pretty good deal right now for us average tax payers. We'll get more cash in our pocket. If your financial situation this year isn't likely to change from last year, you can probably keep your W-4 withholding the same. However, revisit your withholding allowance if your tax bracket changes.
0 comments:
Post a Comment