Are you confused, flustered, tired, or stressed out trying to figure out which individual income tax rate/bracket schedule fits your tax return status? Do not worry - you're not alone. Millions of Americans have made mistakes on this very same subject but with the guidelines below, you can prevent yourself from making the same mistake.
Every year, it seems that Congress and the IRS have nothing been better to do then find ways to change the income tax rate schedules. This makes it increasingly difficult for the average person to figure out which tax bracket they fall in. However, if people plan their taxes and finances ahead of time, they'll be more prepared and better off when April 15 comes along.
However, as your income increases - so does your taxes. A person's tax rate/bracket is calculated based on a person's yearly taxable income and on their filing status. There are only four types of filing statues a person can choose from: single, joint married/qualifying widow(er), married but filling separately, and head of household. These two categories help in determining which tax rate/bracket a person falls into and when that is determined, the taxpayer must look at the Tax Rate Schedule of that year to figure out how much they must pay.
If you are single filing then you must use the Tax Rate Schedule X. People who are married and are filling jointly (or those who qualify as a widow or widower) must use the Tax Rate Schedule Y-1. If you are married but want to file separately, then you must use the Tax Rate Schedule Y-2 and for those who file as the head of a household, they must use the Tax Rate Schedule Z.
Nevertheless, don't despair - various deductions (like the standard deduction and personal exemptions) and adjustments can help lower a person's final taxable income. In many situations, it is not uncommon for a person's taxable income to be less than that person's actual yearly income.
Taxpayers can use their tax rate schedules to help them plan their finances. By using those rates, they will be better equipped to figure out how much taxes they may be forced to pay on Tax Day. They can also use this information to figure out how they can save from paying too many taxes. Therefore, if a person wants to be wise, they need to look over the tax rate schedule, as soon as they possibly can.