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Here Are the 2013 Tax Brackets

Your taxes are officially due in just over two weeks, on April 15. Many of you are likely done with the lamentable task, but for those of you who aren't, here's how the 2013 tax brackets break down:

Tax Rate

Single

Married Filing Jointly

Married Filing separately

Head of Household

10%

Up to $8,925

Up to $17,850

Up to $8,925

Up to $12,750

15%

$8,926 to $36,250

$17,851 to $72,500

$8,926 to $36,250

$12,751 to $48,600

25%

$36,251 to $87,850

$72,501 to $146,400

$36,251 to $73,200

$48,601 to $125,450

28%

$87,851 to $183,250

$146,401 to $223,050

$73,201 to $111,525

$125,451 to $203,150

33%

$183,251 to $398,350

$223,051 to $398,350

$111,526 to $199,175

$203,151 to $398,350

35%

$398,351 to $400,000

$398,351 to $450,000

$199,176 to $225,000

$398,351 to $425,000

39.6%

$400,001 or more

$450,001 or more

$225,001 or more

$425,001 or more

Source: IRS.

As my colleague Dan Dzombak pointed out last week, one thing to keep in mind is that the 2013 tax brackets are marginal in nature.

For instance, let's assume that you're married filing jointly and that you and your spouse earned a combined $100,000 in taxable income last year -- that is, after all of your deductions are subtracted from gross income.

Here's how your taxes would break down:

Tax Bracket

Amount Owed

10%

$1,785

15%

$8,197

25%

$6,874

Total

$16,856

Source: Author's calculations.

The total tax liability in this case would be $16,856, with the lions' share coming from the 15% tax bracket. All things considered, in turn, even though the top marginal rate is 25%, the actual tax liability is 16.9% -- little consolation, I know, but it's a consolation nonetheless.

Among other things, this example demonstrates the importance of maximizing your deductions. And none is more powerful than the deduction allowed for IRA contributions -- the only contender for this crown is perhaps the mortgage interest deduction.

As I illustrated last week, a married couple with $95,000 in combined taxable income could potentially cut their annual tax liability by as much as $2,750 simply by maxing out their annual IRA contribution -- this assumes they qualify for the maximum contribution.

If you have the cash, that's a great deal that shouldn't be passed up.

Either way, however, there's no getting around the fact that tax time is unpleasant. Just keep in mind that it'll be over, one way or another, in a little over two weeks.

Take advantage of this little-known government tax rule
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


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John Maxfield
JohnMaxfield37

John has been writing for The Motley Fool since 2011. As a senior banking analyst, he covers the financial industry and the nation's largest banks in particular. He has a bachelor's degree in economics from Lewis and Clark College and a juris doctorate from Southern Methodist University. He's a licensed attorney in the state of Oregon, and resides in Portland with his wife and twin sons. View John Maxfield's profile on LinkedIn

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