We're less than a month away from tax day. For those who pay taxes once a year -- and that's most of us -- taxes for 2013 are due on April 15, and you'll be using the 2013 Tax Brackets and Tax Tables. But for those who have to pay taxes quarterly, the 2014 tax brackets and tax tables apply -- and those tables are also ready.
While smaller tax tables are at least two years away, pending legislation, in 2014 there are still seven tax brackets. Here they are:
|
Tax Rate |
Single |
Married Filing Jointly or Qualifying Widow |
Married Filing Separately |
Head of Household |
|---|---|---|---|---|
|
10% |
< $9,075 |
< $18,150 |
< $9,075 |
< $12,950 |
|
15% |
$9,076 to $36,900 |
$18,151 to $73,800 |
$9,076 to $36,900 |
$12,951 to $49,400 |
|
25% |
$36,901 to $89,350 |
$73,801 to $148,850 |
$36,901 to $74,425 |
$49,401 to $127,550 |
|
28% |
$89,351 to $186,350 |
$148,851 to $226,850 |
$74,426 to $113,425 |
$127,551 to $206,600 |
|
33% |
$186,351 to $405,100 |
$226,851 to $405,100 |
$113,426 to $202,550 |
$206,601 to $405,100 |
|
35% |
$405,101 to $406,750 |
$405,101 to $457,600 |
$202,551 to $228,800 |
$405,101 to $432,200 |
|
39.6% |
> $406,751 |
> $457,601 |
> $228,801 |
> $432,201 |
Source: IRS.
It's important to note that this a list of marginal tax rates, representing the rate you pay on each additional dollar of income. So for example, assuming no deductions, if you earned $9,076, $1 above the 10% tax bracket, your rate would be 10% on the first $9,075 of income and 15% on the next $1, and not 15% on the whole $8,926.
Other changes on the way
If it seems that every year taxes get slightly more complicated, this year you would be correct. There is one big difference between 2013 and 2014 income taxes, though by the time 2014 tax season rolls around, that could change if Congress acts. But for now, you'll have to think about the penalty for not having health insurance. For low-income consumers, the penalty for not having health insurance is $95. For those earning more than $20,000, the penalty is roughly 1% of your adjusted income. You can read all about the calculations here, but it's important to realize that the actual penalty is 1% of income if you earn more than $20,000, not the $95 that the press bandies about. For high-income taxpayers, that can add up quickly.
Keep watching Fool.com for more tax news, as well as strategies for saving yourself money when Uncle Sam comes calling.
