What is a Tax bracket?
You need to know your income tax bracket in order to estimate how much tax you will owe the
IRS. Tax brackets are the divisions at which tax rates change in a progressive tax system (or an explicitly
regressive tax system, although this is much rarer). The definition of income tax brackets is more complex that it
needs to be so let's understand tax brackets through questions and answers below.
Federal Tax Brackets 2011?
You can find out your federal tax brackets 2011 by looking at the tax bracket chart or the
tax rate chart which can be found in IRS 1040 instruction booklets.
What is my Tax Bracket?
Imagine that there are three tax brackets: 10%, 20%, and 30%.
10% rate applies to income from $1 to $10,000;
20% rate applies to income from $10,001 to $20,000; and
30% rate applies to all income above $20,000.
Under this system, someone earning $10,000 would be taxed at a rate of 10%, paying a total of
$1,000. Someone earning $5,000 would pay $500, and so on. We will examine how to calculate federal income tax
brackets in more detail through questions and answers. For an explanation of US Specific tax brackets, see
Federal Tax Brackets.
Tax Bracket Questions & Answers
Below is a list of top tax bracket questions and answers:
Please refer to individual IRS publications for further information on federal income tax