2012 Tax Rates and Tax Brackets – Know Your Bracket

Welcome reader! In this article, we will have a discussion around the 2012 tax brackets, tax rates and standard deduction. Fortunately  this year there were no increase in taxes as such, perhaps it’s due to presidential election year. The (in)famous ‘Bush era tax cut’ still continues. But, the ultra rich, watch out for next year though.

Note: This article covers tax information for 2012 tax year. which will apply to the returns due MondayApril 15, 2013.

 2012 Tax Brackets

Hope this helps determining your taxes for 2012

Tax Bracket Single Married Filing Jointly Head of Household
10% $0 – $8,700 $0 – $17,400 $0 – $12,400
15% $8,700 – $35,350 $17,400 – $70,700 $12,400 – $47,350
25% $35,350 – $85,650 $70,700 – $142,700 $47,350 – $122,300
28% $85,650 – $178,650 $142,700 – $217,450 $122,300 – $198,050
33% $178,650 – $388,350 $217,450 – $388,350 $198,050 – $388,350
35% Over $388,350 Over $388,350 Over $388,350

A guide to help you determine your correct filing status is here.

2012 Tax Rate Tables

When you calculate your taxes due, refer to the tables, they are taken from IRS documentation online . Remember that tax rates are applicable on your adjusted income after accounting for deductions and other adjustments.

TABLE 1 – Married Individuals Filing Joint Returns and Surviving Spouses.

If Taxable Income is Tax Rate is
$0 – $17,400 10% of taxable income
$17,400 – $70,700 $1,740 plus 15% of excess over $17,400
$70,700 – $142,700 $9,735 plus 25% of excess over $70,700
$142,700 – $217,450 $27,735 plus 28% of excess over $142,700
$217,450 – $388,350 $48,665 plus 33% of excess over $217,450
$388,350+ $105,062 plus 35% of excess over $388,350

TABLE 2 – Head of Household Tax rates

If Taxable Income is The Tax is
$0 – $12,400 10% of taxable income
$12,400 – $47,350 $1,240 plus 15% of excess over $12,400
$47,350 – $122,300 $6,642.50 plus 25% of excess over $47,350
$122,300 – $198,050 $25,380 plus 28% of excess over $122,300
$198,050 – $388,350 $46,590 plus 33% of excess over $198,050
$388,350+ $109,389 plus 35% of excess over $388,350

Table 3 – Single Filers Tax Rates

If Taxable Income is The Tax is
$0 – $8,700 10% of taxable income
$8,700 – $35,350 $870 plus 15% of excess over $8,700
$35,350 – $85,650 $4,867.50 plus 25% of excess over $35,350
$85,650 – $178,650 $17,422.50 plus 28% of excess over $85,650
$178,650 – $388,350 $43,482.50 plus 33% of excess over $178,650
$388,350+ $112,683.50 plus 35% of excess over $388,350

Table 4 - Married Individuals Filing Separate Returns Tax Rate

If Taxable Income is The Tax is
$0 – $8,700 10% of taxable income
$8,700 – $35,350 $870 plus 15% of excess over $8,700
$35,350 – $71,350 $4,867.50 plus 25% of excess over $35,350
$71,350 – $108,725 $13,876.50 plus 28% of excess over $71,350
$108,725 – $194,175 $24,332.50 plus 33% of excess over $108,725
$194,175+ $52,531 plus 35% of excess over $194,175

2012 IRS Standard Deduction table

If you are like me and going in for standard deduction, as opposed to itemized, here is one very important table for you to calculate adjusted gross income in 2012

Filing Status Standard Deduction
Married filing joint return $11,900
Head of household $8,700
Signle Filers $5,950
Married filing separately $5,950

The personal and dependency exemption is now $3,800

Watch out for the specific tips for your 2012 taxes in upcoming blog posts.

is a husband and working as a software professional for a Fortune 100 corporation in Florida. Thanks for visiting the blog.

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Comments

  1. says

    This is probably going to be the year we get into that 25% tax bracket – I know most people would be excited about it, but I never expected to be able to earn that much money (well, along with my husband, naturally) as a freelancer!

       2 likes

  2. says

    My wife and I get screwed. This year has been the best for me so far and we aren’t even half way done. Oh well I gotta make the money and pay my taxes no matter how depressing reading that number was above.

       0 likes

  3. says

    I don’t know what everyone gets all depressed about when it comes to taxes. I look at it like this: the more I have to pay in taxes, and even if I can’t claim certain deductions or credits, I’m ecstatic because that translates into earning a significant amount of income. I’d much rather make a ton & pay a lot than make nothing and be exempt from filing.

       0 likes

    • says

      Mathematically you’re right Eric, psychologically people have different feeling. I am like you, if my tax bill is fatter that means my savings are fatter too, absolutely love it!

         0 likes

  4. says

    I get so excited for tax season. I’m one of those PF Bloggers that other PF Bloggers hate…I get my taxes withheld and then get a hefty “return.” I know…interest free savings…but it works for us!

       0 likes

    • says

      I think most PF bloggers teach the importance of psychological factor in managing finances, often psychological factors become more valuable than mathematical factors.

         0 likes

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