Fun.
You know what else is fun?
How about taking a peak at expected 2013 Federal income tax brackets and marginal tax rates:
| Rate | Single Filers | Married Joint Filers | Head of Household Filers |
| 10% | $0 to $8,925 | $0 to $17,850 | $0 to $12,750 |
| 15% | $8,925 to $36,250 | $17,850 to $72,500 | $12,750 to $48,600 |
| 25% | $36,250 to $87,850 | $72,500 to $146,400 | $48,600 to $125,450 |
| 28% | $87,850 to $183,250 | $146,400 to $223,050 | $125,450 to $203,150 |
| 33% | $183,250 to $398,350 | $223,050 to $398,350 | $203,150 to $398,350 |
| 35% | $398,350 to $400,000 | $398,350 to $450,000 | $398,350 to $425,000 |
| 39.6% | $400,000 and up | $450,000 and up | $425,000 and up |
Keep in mind that the tax rates listed in these tables are marginal rates. That means that you do not owe your rate on all of your income. For example, if you single, you earn $100,000 per year, you would not owe 28% on all of your income -- you would not owe $28,000 to the federal government. You would owe 10% of $8,925, 15% of $27,325 (the difference between the top and the threshold of the second tax bracket), 25% of $51,600, and 28% of $12,150. (full story)
These rates do not include the roll back of the temporary payroll taxes for employees earning less than $110,100. If you are one of the 160 million people this has impacted, you've already noticed the difference in your pay check.
Kindly,
Craig Turley
Craig Turley is a licensed mortgage banker in Arizona and California based out of Scottsdale, Arizona. All tax questions should be directed to your individual tax professional.
