The tax brackets 2011 have been split up into six primary brackets which range from 10 percent through up to the highest of 35 percent.
Now, it is essential to know, or estimate, what tax rate you will be in for 2011 in order to approximate your total tax withholding or tax estimates as the year goes by.
Before you are able to figure out your tax bracket for 2011, the first thing you must decide is what your filing status is.
This step is very important to the filing process.
Whatever you choose, your 2011 filing status will not only affect the outcomes on your tax bracket, it will also affect the outcomes of your standard deduction and your eligibility for tax credits.
Right here is a quick description of the different filing statuses for 2011 and how they affect your tax bracket 2011.
Each status behaves a little differently, so we're going to determine an estimation of the tax burden for 2011, supposing you've made $100,000.
The first filing status for 2011 is "single.
" You could file your 2011 tax return as a single man or woman if you aren't married, were wedded but legally separated at the end of 2011, or widowed during 2011 and not remarried.
Generally, in order to file as a single individual, you have to be single or otherwise not married on the last day of the year.
When you file single in 2011, your standard deduction is going to be $5,800.
Those who choose to file single typically share the 2 lowest standard deductions as well as tax brackets with "married filing separately" men and women.
The second filing status for 2011 is "married filing jointly.
" Married filing jointly is a unique filing status for husbands and wives.
Husbands and wives have the opportunity to take advantage of a higher standard deduction in addition to more preferential treatment in regard to tax brackets and tax credits.
The most obvious aim of the special treatment methods are that the federal government chooses to promote marriage and procreation.
Being a married filing jointly couple, you will have a standard deduction of $11,600 for 2011.
If you notice, this is exactly double the single deduction.
Also some of the tax rates will be more favorable.
The third filing status is "married filing separately.
" You could already have deduced from the label that this filing status is for individuals who are at present married but are separated or choose to continue to be monetarily separated.
Some couples are in the steps involved in divorcing at the end of the year.
Based on the law, these individuals are nevertheless married despite the fact that they are now in the process of divorce.
When you're married on December 31, 2011, the tax code treats you as married whether you're divorcing or not.
There are a lot of couples going through the process of a divorce who wish to keep finances separate, so they can file married filing separately.
By filing separately, each individual will receive a standard deduction of $5,800--the same as a single person.
Although the standard deduction the exact same as that of a single taxpayer, the tax bracket isn't.
People married filing separately have much more unfavorable tax brackets.
Your fourth filing status is "head of household.
" To file your 2011 tax return as a head of household, you will need to be single on December 31, 2011.
You may have never been married, or else you could have been divorced or widowed.
You have to provide a home and a minimum of 50% of the cost of living for one or more dependents.
Most frequently these types of dependents are youngsters, impaired persons, or the elderly.
Head of household men and women get a bigger standard deduction of $8,700 for 2011.
Head of household tax payers are also a part of a different set of tax brackets.
Now that you know what filing status you qualify for, you can more easily do you taxes and ensure that you get the maximum return that you are legally entitled to.