2010, 2011 Federal Income Tax Tables
2010 will be the last year for most tax breaks. Many tax breaks and stimulus plans expire at the end of this year. All taxpayers can expect to pay more in taxes come 2011. This will be difficult for most of us; we have all become accustom to lower taxes during our economic hardship across the country.
2010, 2011 Federal Income Tax Tables
Tax rates that were in effect before 2001 will return. The top income tax rate is scheduled to go back to 39.6 percent, and the special, low 10 percent bracket will be eliminated. Whether this will actually happen will be at the digression of Congress during 2010. If Congress allows the current plan, the following changes will go into effect:
We will see increases to the following tax rates:
Capital Gains Rates
Dividend Tax Rates
Estate Tax
We will see reductions in the following tax credits:
Child Tax Credit
Education Credit
Earned Income Tax Credit
And the following deductions are to be eliminated:
Mortgage Insurance Premiums – no longer available
College Savings Plans – no longer tax free
Payroll Tax Credit – no longer available
According to the IRS, the upcoming changes will cause the 2011 federal tax brackets to be considerably higher, looking something like this:
Tax Bracket Married Filing Jointly Single:
15% Bracket $0 – $70,040 $0 – $35,020
28% Bracket $70,040 – $141,419 $35,020 – $84,872
31% Bracket $141,419 – $215,528 $84,872 – $177,006
36% Bracket $215,528 – $384,860 $177,006 – $384,860
39.6% Bracket Over $384,860 Over $384,860
However, this could all change if Congress approves extensions or other changes for lower taxes.
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