• Tax brackets can determine how much you owe.tax forms image by Chad McDermott from Fotolia.com
  
  In a progressive tax system the brackets are the cutoff values after which income is taxed at a higher rate. The Internal Revenue Service adjusts the tax brackets a little each year to account for inflation. Any income that is generated within a given bracket is taxed at that rate, to avoid situations where earning an extra small amount of money can cost someone a lot in taxes.
  
  

Filing Status

• There are four filing statuses. Your filing status will depend on your living situation at the end of the year. The "single" filing status is for people who are unmarried at the end of the year. The "joint" filing status is for married couples filing together. The "head of household" filing status, often called HOH, is for people who pay more than half the cost of a dependent's home and list at least one relative as a dependent. The "married filing separate" filing status is for married couples who decide to file separate returns.
  
  

2010 10 Percent Tax Bracket

• The first tax bracket applies to single filers and married couples filing separately up to $8,375. Head-of-household filers are in the 10 percent bracket for up to $11,950. Joint filers are in the 10 percent bracket up to $16,750.
  
  

2010 15 Percent Tax Bracket

• For income above the 10 percent bracket, single and married couples filing separately are in the 15 percent bracket up to $34,000. Head-of-household filers are in the 15 percent bracket up to $45,550, and joint filers are in this bracket up to $68,000.
  
  

2010 25 Percent Tax Bracket

• For income above the 15 percent bracket, single filers are in the 25 percent bracket up to $82,400. Married couples filing separately are in this bracket up to $68,650. Head-of-household filers are in the 25 percent bracket up to $117,650, and joint filers are in this bracket up to $137,300.
  
  

2010 28 Percent Tax Bracket

• Single filers up to $171,850 fall into the 28 percent tax bracket. Married couples filing separately are in this bracket if they make up to $171,850. Head-of-household filers with income up to $190,550 and joint filers with income up to $209,250 fall into this bracket. Like all brackets, the 28 percent tax rate applies only to income above the other tax brackets.
  
  

2010 33 Percent Tax Bracket

• Married couples who are filing separately are in the 33 percent tax bracket with income up to $186,825. The other three tax filing statuses are all in the 33 percent tax bracket with income up to $373,650.
  
  

2010 35 Percent Tax Bracket

• The 35 percent tax rate applies to all income above the limits for the 33 percent tax bracket.