For Tax Geeks like me, it’s an exciting time when the new tax tables are announced by my friends at the IRS. If you’ve been reading this blog for a while, you know how taxes work, more or less. The tables aren’t the actual tax you pay on gross income, but on taxable income which is gross less a number of items, including the personal exemption which rises to $3,950 in ’14 and the standard deduction for single $6,200 or joint $12,400.Â
I’ll be referring back to this article over the next year whenever the tax table is part of the conversation. Check out the new rate table and start planning for 2014.
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Single |
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| Taxable income is over | But not over | The tax is | Plus | Of the amount over |
| $0 | 9,075 | $0.00 | 10% | $0 |
| 9,075 | 36,900 | 907.50 | 15% | 9,075 |
| 36.900 | 89,350 | 5,081.25 | 25% | 36,900 |
| 89,350 | 186,350 | 18,193.75 | 28% | 89,350 |
| 186,350 | 405,100 | 45,353.75 | 33% | 186,350 |
| 405,100 | 406,750 | 117,541.25 | 35% | 405,100 |
| 406,750 | 118,118.75 | 39.6% | 406,750 | |
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Married Filing Jointly |
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| Taxable income is over | But not over | The tax is | Plus | Of the amount over |
| $0 | 18,150 | $0.00 | 10% | $0 |
| 18,150 | 73,800 | 1,815.00 | 15% | 18,150 |
| 73,800 | 148,850 | 10,162.50 | 25% | 73,800 |
| 148,850 | 226,850 | 28,925.00 | 28% | 148,850 |
| 226,850 | 405,100 | 50,765.00 | 33% | 226,850 |
| 405,100 | 457,600 | 109,587.50 | 35% | 405,100 |
| 457,600 | 127,962.50 | 39.6% | 457,600 | |