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2012 IRS Tax Brackets

Posted By Jim On 02/22/2012 @ 9:51 am In Taxes | 92 Comments

Now that we’re in the heart of tax season and the tax brackets for the current calendar year have been finalized, I’m ready to take off the “sneak peek [3]” off the label for the 2012 IRS tax brackets. Our original figures were not off, the 2012 tax brackets were exactly how we predicted and that’s in part because we knew what inflation would be (and it’s effects on our tax structure).

The current tax brackets, that is the tax brackets that are in effect for the 2012 tax year, can be found on this archived page for 2011 tax brackets [4]. These apply for tax year 2011, which you are preparing for today. The rates below will apply when you go to file your taxes in 2013. I know it’s confusing but this is how the cool tax kids talk about it.

2012 IRS Tax Brackets

Below are the official 2012 tax rates broken down by tax bracket and filing status (single, married filing jointly, and head of household):

Tax Bracket Single Married Filing Jointly Head of Household
10% Bracket $0 – $8,700 $0 – $17,400 $0 – $12,400
15% Bracket $8,701 – $35,350 $17,401 – $70,700 $12,401 – $47,350
25% Bracket $35,351 – $85,650 $70,701 – $142,700 $47,351 – $122,300
28% Bracket $85,651 – $178,650 $142,701 – $217,450 $122,301 – $198,050
33% Bracket $178,651 – $388,350 $217,451 – $388,350 $198,051 – $388,350
35% Bracket $388,350+ $388,350+ $388,350+

The brackets are slightly higher compared to last year, to account for inflation, but aren’t much of an increase. The brackets themselves have not changed though they may at the end of this year since the Bush tax cuts are expiring, after a two year extension.

Capital Gains Rates

The capital gains rates did not change from last year to this year, they remain:

  • Short term capital gains: Taxed at your rate for ordinary income (so your tax bracket rate).
  • Long term capital gains: If you are in the 10% or 15% tax bracket, your rate is 0%. Otherwise, 15%.

In 2013, these rates are set to increase. In 2013, and beyond, you will be taxed at 10% if you are in the 15% tax bracket and 20% in all higher tax brackets.

Other Changes

There are other notable increases as well, including an increase in the personal and dependency exemption to $3,800, an increase in the standard deduction for single filers to $5950 and for married filing jointly will increase to $11900.

The next question is how these brackets will be affected by upcoming legislation for 2013.

(Photo: kozumel [5])


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[2] Email: mailto:?subject=http://www.bargaineering.com/articles/2012-irs-tax-brackets.html

[3] sneak peek: http://www.bargaineering.com/articles/sneak-peak-projected-2012-tax-brackets.html

[4] 2011 tax brackets: http://www.bargaineering.com/articles/federal-income-irs-tax-brackets.html

[5] kozumel: http://www.flickr.com/photos/kozumel/2228603119/sizes/l/in/photostream/

Thank you for reading!