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 Monday, April 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.
| SB 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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Next year my hubby and I are filing jointly… looks like we’re raising brackets according to your charts. Fun! (not really lol)
paying taxes were never a fun
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!
good to know your freelancing is thriving. Do you have your own blog?
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.
that’s correct Jai, you don’t have any other choice, unfortunately
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.
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!
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!
I think most PF bloggers teach the importance of psychological factor in managing finances, often psychological factors become more valuable than mathematical factors.
dang….so depressing. Wife and I are in 28%….so much money gone