Tax Bracket Rates 2018 - 2019
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Tax Brackets and Tax Rates
Each year when you set out to file your federal income tax return before April, you’re actually filing the previous years taxes.
Those taxes are based on the previous years income tax brackets and rates that define the amount of tax you will owe to Uncle Sam after tax deductions are taken.
Federal Income Tax Brackets (IRS Tax Rates)
Each year tax experts get together and use inflation data to project what the next new year’s income tax brackets will look like. Every year many factors come into play like, expiring tax cuts and new tax laws. This year it was just a matter of slightly adjusting the tax brackets (and the standard deduction) for inflation.
While the IRS uses a somewhat controversial approach to make their adjustments, the Tax Foundation generally has some projected tax return calculator figures.
Use the table above for a quick rundown of what the federal income tax brackets are in the upcoming year, and past years brackets and rates.
Related factors that influence your taxes:
- The personal and dependency exemptions
- The standard deduction for individuals filing single
- The standard deduction for married couples filing jointly
Looking ahead there are several factors that still play into the tax code that continue to affect our rates including the Bush-era tax cuts. Time will tell what's to become of this expiring tax break.
The income tax rates apply to money you earn during the tax year for which you are filing.
Therefore, when the new rates come out each year, it's worth a look to see if you should be making an adjustment in your paycheck withholding or quarterly payments. This will insure that your not paying too little or too much based on adjustments you can make for the tax year.
It's good to prepare by insuring your paying enough in so that your not surprised by a big tax due bill you weren't expecting, or prepared for, come tax season.
If you pay estimated taxes throughout the year, you may be more aware of the change in tax brackets and tax rates since this effects you directly.
Social Security / Medicare Tax Rates, Payments.
For employee's the tax rate for social security is 6.2% on wages paid and tips received after February 29, 2012.
The employer tax rate for social security remains unchanged at 6.2%. The social security wage base limit is $110,100. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2011. There is no wage base limit for Medicare tax in the United States. Additionally there is an additional .9% on income over certain thresholds for each filing status.