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New Income Tax Rate Tables 2012, Inflation Adjustment

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New income tax rate table for 2012 (inflation adjustment) has been released by the IRS on Thursday (October 20, 2011) and it’s effective in the beginning of 2012. The income tax rate tables came with revenue procedure, and many adjustments on tax credit. I plan to post the tax credit adjustment item later.

There are 5 tables released: (1) Married Individuals Filing Joint Returns and Surviving Spouses; (2) Heads of Households; (3) Unmarried Individuals (other than Surviving Spouses and Heads of Households); (4) Married Individuals Filing Separate Returns; as well as (5) Estates and Trusts.

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For taxable years beginning in 2012, the tax rate tables under § 1 are as follows:

TABLE 1 – Section 1(a) – Married Individuals Filing Joint Returns and Surviving Spouses

  • If Taxable Income Is: Not over $17,400 ~ The Tax Is: 10% of the taxable income
  • If Taxable Income Is: Over $17,400 but not over $70,700 ~ The Tax Is: $1,740 plus 15% of the excess over $17,400
  • If Taxable Income Is: Over $70,700 but not over $142,700 ~ The Tax Is: $9,735 plus 25% of the excess over $70,700
  • If Taxable Income Is: Over $142,700 but not over $217,450 ~The Tax Is: $27,735 plus 28% of the excess over $142,700
  • If Taxable Income Is: Over $217,450 but not over $388,350 ~ The Tax Is: $48,665 plus 33% of the excess over $217,450
  • If Taxable Income Is: Over $388,350 ~ The Tax Is: $105,062 plus 35% of the excess over $388,350

TABLE 2 – Section 1(b) – Heads of Households

  • If Taxable Income Is: Not over $12,400 ~ The Tax Is:10% of the taxable income
  • If Taxable Income Is: Over $12,400 but not over $47,350 ~ The Tax Is: $1,240 plus 15% of the excess over $12,400
  • If Taxable Income Is: Over $47,350 but not over $122,300 ~ The Tax Is: $6,482.50 plus 25% of the excess over $47,350
  • If Taxable Income Is: Over $122,300 but not over $198,050 ~The Tax Is: $25,220 plus 28% of the excess over $122,300
  • If Taxable Income Is: Over $198,050 but not over $388,350 ~ The Tax Is: $46,430 plus 33% of the excess over $198,050
  • If Taxable Income Is: Over $388,350 ~ The Tax Is: $109,229 plus 35% of the excess over $388,350

TABLE 3 – Section 1(c) – Unmarried Individuals (other than Surviving Spouses and Heads of Households)

  • If Taxable Income Is: Not over $8,700 ~ The Tax Is: 10% of the taxable income
  • If Taxable Income Is: Over $8,700 but not over $35,350 ~ The Tax Is: $870 plus 15% of the excess over $8,700
  • If Taxable Income Is: Over $35,350 but not over $85,650 ~ The Tax Is: $4,867.50 plus 25% of the excess over $35,350
  • If Taxable Income Is: Over $85,650 but not over $178,650 ~ The Tax Is: $17,442.50 plus 28% of the excess over $85,650
  • If Taxable Income Is: Over $178,650 but not over $388,350 ~ The Tax Is: $43,482.50 plus 33% of the excess over $178,650
  • If Taxable Income Is: Over $388,350 ~ The Tax Is: $112,683.50 plus 35% of the excess over $388,350

TABLE 4 – Section 1(d) – Married Individuals Filing Separate Returns

  • If Taxable Income Is: Not over $8,700 ~ The Tax Is:10% of the taxable income
  • If Taxable Income Is: Over $8,700 but not over $35,350 ~ The Tax Is: $870 plus 15% of the excess over $8,700
  • If Taxable Income Is: Over $35,350 but not over $71,350 ~ The Tax Is: $4,867.50 plus 25% of the excess over $35,350
  • If Taxable Income Is: Over $71,350 but not over $108,725 ~ The Tax Is: $13,867.50 plus 28% of the excess over $71,350
  • If Taxable Income Is: Over $108,725 but not over $194,175 ~ The Tax Is: $24,332.50 plus 33% of the excess over $108,725
  • If Taxable Income Is: Over $194,175 ~ The Tax Is: $52,531 plus 35% of the excess over $194,175

TABLE 5 – Section 1(e) – Estates and Trusts

  • If Taxable Income Is: Not over $2,400 ~ The Tax Is: 15% of the taxable income
  • If Taxable Income Is: Over $2,400 but not over $5,600 ~ The Tax Is: $360 plus 25% of the excess over $2,400
  • If Taxable Income Is: Over $5,600 but not over $8,500 ~ The Tax Is: $1,160 plus 28% of the excess over $5,600
  • If Taxable Income Is: Over $8,500 but not over $11,650 ~ The Tax Is: $1,972 plus 33% of the excess over $8,500
  • If Taxable Income Is: Over $11,650 ~ The Tax Is: $3,011.50 plus 35% of the excess over $11,650

Source: IRS, Revenue Procedure 2011-52

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